Fresh details have emerged about the regulatory intervention at Union Bank of Nigeria (UBN), with a forensic audit alleging extensive financial irregularities during the tenure of its former owners and directors.
The Central Bank of Nigeria (CBN) dissolved UBN’s board and management in January 2024, citing concerns over financial stability. While the full forensic audit has not been publicly released, sources familiar with the investigation indicate that the intervention was triggered by transactions that reportedly posed risks to the bank’s solvency.
Excerpts reviewed by investigators suggest that former owners and directors engaged in financial reporting and internal transactions that raised regulatory concerns. Key issues include the handling of foreign loans and restructuring arrangements described in the report as “unorthodox financial engineering,” which could have had significant financial implications.
One notable matter involves a $300 million facility from African Export-Import Bank (Afreximbank), initially obtained by Titan Trust Bank before its merger with Union Bank. Investigators allege that this unhedged facility was transferred to Union Bank’s balance sheet without full disclosure, potentially exposing the bank to foreign exchange risks. The report also suggests that proceeds from the facility may have been used to acquire shares in Union Bank, raising questions about whether repayment obligations were effectively shifted onto the bank itself.
The forensic audit reportedly highlighted other offshore loan transactions and swap arrangements that may not have been fully disclosed to regulators or stakeholders. Certain withdrawals to meet obligations related to foreign loans were also noted, which may have contributed to foreign currency liquidity pressures during the review period.
No criminal charges have been filed, and the allegations remain untested in court. Attempts to obtain comments from former directors, owners, Titan Trust Bank, and Afreximbank were unsuccessful. A source close to the investigation said the CBN’s actions were intended to prevent systemic risks to the banking sector.
Since the intervention, Union Bank has begun recovering, regaining market share and meeting obligations. By the third quarter of 2025, the bank was reportedly on track to meet the ₦200 billion new capital requirement needed to retain its standalone national banking license.
In a statement on March 25, 2026, following a Federal High Court judgment, the CBN reaffirmed that UBN remains under intervention management and that its status has not changed. The apex bank emphasized that Union Bank is fully capable of meeting its obligations to customers and stakeholders and reiterated its commitment to regulatory oversight to ensure safety and stability.
The CBN also noted that while 33 banks have successfully recapitalized, a limited number of institutions, including intervention banks like Union Bank, remain under ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks. The central bank assured the public that all banks remain fully operational, maintaining uninterrupted access to banking services.
