Fresh details have emerged regarding the Central Bank of Nigeria’s (CBN) decision to restructure the board and management of Union Bank of Nigeria, following findings from a forensic audit that raised concerns about the bank’s financial health.
According to information drawn from the audit report, the intervention carried out in January 2024 was triggered by issues believed to pose risks to the bank’s solvency and overall stability.
The report highlighted concerns around financial reporting practices, the handling of foreign loans, and certain complex transactions within the bank’s operations.
One of the key issues raised involved Titan Trust Bank, an investment vehicle linked to the bank’s former owners, which was later merged with Union Bank. The report stated that a $300 million loan obtained from the Africa Export-Import Bank was central to the acquisition structure.
It further noted that the loan was reflected in Union Bank’s books, with repayment obligations and associated financial exposures impacting the institution’s balance sheet.
Investigators also alleged that there were no proper hedging arrangements in place to cushion the bank against foreign exchange risks tied to the dollar-denominated loan, leading to increased exposure as exchange rates fluctuated.
The report added that accumulated interest and fees over time contributed to additional financial strain, with revaluation losses becoming more pronounced by the third quarter of 2025.
It also pointed to other offshore loan transactions and swap arrangements, as well as withdrawals linked to obligations arising from the foreign currency facilities, all of which reportedly had implications for liquidity management.
While the findings raised concerns, a forensic analyst familiar with the matter—who spoke on condition of anonymity—said the CBN’s intervention helped prevent a deeper crisis and supported the bank’s stabilisation during a critical period.
According to the source, the regulatory action created a “buffer period” that allowed the new management team to restructure operations and gradually restore confidence.
Since then, Union Bank has reportedly made progress in strengthening its financial position, recovering market share, and meeting its obligations as they fall due.
By the third quarter of 2025, the bank was said to be on a recovery path, with analysts projecting that it could meet the Central Bank’s N200 billion recapitalisation requirement needed to maintain its national banking licence.
In a statement responding to a Federal High Court judgment delivered on March 25, 2026, in Lagos, the CBN said it was still reviewing the Certified True Copy of the ruling but maintained that Union Bank’s status remains unchanged under its regulatory oversight.
The apex bank stressed that it continues to act strictly within its legal mandate and regulatory framework.
It also assured the public that Union Bank remains capable of meeting its obligations to customers and stakeholders, adding that ongoing supervision is aimed at ensuring stability and public confidence in the financial system.
The CBN further noted that while 33 banks have successfully completed recapitalisation, a small number of institutions are still undergoing regulatory and judicial processes.
Despite these developments, the regulator maintained that all banks in the system remain fully operational, with uninterrupted access to banking services for customers.
