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Fresh insights have emerged linking the intervention of the Central Bank of Nigeria in Union Bank of Nigeria to findings from a forensic audit that raised concerns about the bank’s financial position and operational practices.
The January 2024 regulatory action, which led to the appointment of a new board and management, followed issues identified during the audit relating to financial reporting, foreign loan management, and certain internal transactions.
According to extracts from the report, Titan Trust Bank—linked to the bank’s former owners and directors and later merged with Union Bank—had secured a $300 million loan from African Export-Import Bank. The facility was subsequently reflected in Union Bank’s books, with implications for its financial position and obligations.
The report indicated that the loan formed part of the financing structure used in the acquisition of Union Bank shares, with repayment responsibilities also tied to the bank’s records. It further highlighted the absence of hedging arrangements against potential foreign exchange revaluation risks, alongside the accumulation of interest and associated charges.
By the third quarter of 2025, these exposures had translated into notable revaluation impacts and increased financial obligations.
Investigators also examined the utilisation of offshore loans, including swap-related transactions, as well as withdrawals connected to obligations arising from the foreign currency facility. These activities were noted to have implications for the bank’s liquidity position.
Industry observers suggest the intervention helped stabilise the institution and mitigate potential spillover risks to the broader financial system. The regulatory action created a transition window for the new management to restructure operations and restore stability.
Since then, Union Bank has shown signs of recovery, including improvements in market positioning and the fulfilment of maturing obligations. Analysts expect the bank to meet the ₦200 billion minimum capital requirement needed to retain its national banking licence.
In a statement addressing a March 25, 2026 judgment by the Federal High Court in Lagos, the Central Bank reaffirmed that Union Bank remains under its intervention framework while it reviews the Certified True Copy of the ruling.
The apex bank reiterated its commitment to regulatory due process, assuring stakeholders that the bank continues to meet its obligations to customers and remains operational.
It further noted that a small number of financial institutions are still undergoing regulatory and judicial processes under established supervisory frameworks, while emphasising that banking services across the system remain uninterrupted.
The development underscores ongoing efforts by regulators to strengthen oversight, maintain financial system stability, and reinforce confidence in Nigeria’s banking sector.
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