New details have emerged on the circumstances surrounding the appointment of a new board and management for Union Bank of Nigeria by the Central Bank of Nigeria.
A forensic audit of the bank indicated that the January 2024 intervention in the first-generation commercial bank followed concerns over alleged financial practices that threatened the solvency of the institution.
Extracts from the forensic report pointed to issues relating to financial reporting, the management of foreign loans, and certain transactions within the bank’s operations.
The report indicated that Titan Trust Bank, the investment vehicle linked to the former owners and directors, which was merged with Union Bank, had a loan of $300m obtained from Africa Export-Import Bank.
According to the report, the loan was reflected in the books of Union Bank, with implications for the bank’s financial position and operations. It was also indicated that the loan formed part of the financing structure used in acquiring shares of Union Bank, with associated repayment obligations reflected in the bank’s records.
The report further alleged that there were no hedging arrangements against potential revaluation losses on the foreign currency loan, while interest and fees accumulated over time.
This resulted in significant revaluation impacts and additional financial obligations by the third quarter of 2025.
In a formal statement on a judgment delivered on March 25, 2026, by the Federal High Court in Lagos concerning its regulatory action on Union Bank, the CBN stated that while it was obtaining and carefully reviewing the Certified True Copy of the judgment, the status of Union Bank had not changed, implying that the lender remains under CBN intervention management.