As Nigeria’s financial landscape continues to evolve, Union Bank finds itself at the centre of controversy, raising questions about its future as the country moves closer to its recapitalisation deadline.
The bank, once a trusted household name in Nigeria’s banking sector, is now embroiled in a web of financial and regulatory uncertainties following the takeover by Titan Trust Bank (TTB) in 2022. With the Nigerian government now directly involved, the bank’s recapitalisation efforts face significant hurdles.
The CBN has constituted a new board for Union Bank.
According to the Union Bank website, Bayo Adeleke is the new chairman of Union Bank, while Yetunde Oni is retained as the managing director.
The board currently has four independent non-executive directors – Oluyinka Abimbola Morgan, Chiamaka Ezenwa, Mohammed Balarabe and Eileen C. Shaiyen. There are also two new executive directors, Taiwo Shote and Kelechi Nwaoba, in addition to Mannir Ringim, who was appointed in January 2024 when the board and management were dissolved and taken over.
A History of Growth and Controversy
Union Bank, with roots tracing back decades in Nigeria, enjoyed a reputation for stability until Atlas Mara, a former investor and African investment vehicle co-founded by Bob Diamond, began taking a more active role in its ownership. Atlas Mara initially entered the picture in 2014 when it acquired a 20.9 per cent stake from the Asset Management Corporation of Nigeria (AMCON).
By 2018, its stake had grown to 49 per cent, and in December 2021, Atlas Mara and other stakeholders decided to sell a controlling 93.41 per cent stake in the bank to Titan Trust Bank (TTB).
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The sale, finalised in June 2022, was a pivotal moment in Union Bank’s history. It paved the way for Titan Trust Bank, a relatively new player in Nigeria’s banking sector, to take control. However, this change of ownership has not been without its challenges.
The Controversial Acquisition
Titan Trust Bank’s acquisition of Union Bank was marked by a series of regulatory approvals and a mandatory takeover offer (MTO) for Union Bank’s remaining shares in November 2022.
The deal, which culminated in a complete takeover in May 2023, was followed by Union Bank’s application to delist from the Nigerian Stock Exchange, which was approved in November 2023. However, this smooth transition quickly hit a rough patch.
The controversy began when the Central Bank of Nigeria (CBN) found itself under investigation by Jim Obazee, a special investigator appointed by President Bola Tinubu in July 2023 to probe alleged corrupt activities in the CBN and related government businesses.
As the investigation unfolded, allegations of financial misconduct and the diversion of government funds to Titan Trust Bank and Union Bank surfaced. These claims prompted serious questions about the financial sources behind Titan Trust Bank’s acquisition of Union Bank.
The Obazee Investigation and Government Involvement
As the investigation progressed, a major issue arose: the inability of Titan Trust Bank’s purported owners, including Cornelius Vink and Rahul Savara, to defend the source of the funds used to establish the bank and finance the Union Bank acquisition.
Obazee raised concerns about the transparency of the transaction, particularly regarding a $300 million loan from Afreximbank and an additional $190 million equity contribution from TTB’s primary shareholders.
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In an attempt to defuse the situation, Babatunde Lemo, the chairman of TTB, was alleged to have forfeited his equity in the bank during the investigation. He was said to also have recommended that the Nigerian government take control of Titan Trust Bank and Union Bank.
Despite these efforts, sources familiar with the case said Vink and Savara failed to attend multiple meetings with the special investigator, raising further suspicions.
The source said the lack of cooperation from the alleged owners led to a proposal by Lemo for the government to take over their shareholding, a recommendation that was subsequently approved by President Tinubu in January 2024.
Government Takeover and the Uncertain Future of Union Bank
In January 2024, the Nigerian government, through the Central Bank of Nigeria (CBN), took full ownership of the newly restructured Union Bank. This decision came amid growing concerns about the legitimacy of the acquisition and the true ownership of Titan Trust Bank. The government’s move to take over Union Bank was also motivated by the failure of Vink and Savara to provide satisfactory proof of their financial interests in the bank, leading to questions about the integrity of the entire transaction.
As of now, Union Bank’s recapitalisation efforts have been thrown into disarray. With the federal government’s involvement, a new interim management team has been appointed, including Yetunde Oni as managing director and Mannir U. Ringim as executive director.
However, the bank’s future remains uncertain. The new leadership, along with the establishment of a new board for Union Bank, has left many wondering who will ultimately steer the bank towards its recapitalisation target set for March 2026.
Public and Regulatory Scrutiny
The events surrounding Union Bank’s acquisition by Titan Trust Bank have raised important questions about the transparency of financial transactions in Nigeria’s banking sector. While Titan Trust Bank and its affiliates, including Tropical General Investments (TGI), have consistently denied allegations of financial impropriety, they face significant public and regulatory scrutiny.
TGI has defended its ownership and financing processes, stating that the capital used to acquire Union Bank was sourced from legitimate channels, including a $300 million loan from Afreximbank and funds from TGI’s sale of Chi Ltd to Coca-Cola.
According to TGI, “During the special investigation, the boards and management of TTB and Union Bank made all representations to the investigation team. There is no illegality or fraud in the acquisition as alleged. We insist that this acquisition can vie for one of the most professional and transparent in the history of this country.
“On allegations relating to the ownership of Titan Trust Bank, the board and management provided the special investigators with the share ownership structure in TTB, including the holdings of Magna International DMCC and Luxis International DMCC owned by Mr Raul Savara and Mr Cornelis Vink. These individuals are prominent global entrepreneurs and have thriving businesses in Nigeria and several countries around the world. The shareholding structure is also verifiable at the Corporate Affairs Commission (CAC).”
Despite these assurances, the special investigator’s report continues to allege misconduct, leading to the government’s intervention. The investigation into the ownership structures and the alleged use of government funds for personal gain has added a layer of complexity to the situation, one that has caught the attention of both Nigerian regulators and the international community.
The Road Ahead
As Union Bank prepares for its recapitalisation in 2026, it faces not only the challenge of meeting regulatory capital requirements but also the burden of rebuilding trust with the Nigerian public. The ongoing investigations and the government’s involvement in the bank’s operations have placed a cloud of uncertainty over its future.
Pinnacle Daily’s findings also suggest that none of the purported owners has taken legal action to challenge Obazee’s recommendation of the takeover of the bank.
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Afreximbank, from which a $300 million facility was purportedly sourced to finance the acquisition of the 93.4 per cent shares in Union Bank, has also not pressed charges since 2024.
In the coming months, as the Central Bank of Nigeria (CBN) works to resolve the issues surrounding Union Bank’s ownership and financial stability, Nigerians will be watching closely to see how this saga unfolds. Will Union Bank’s recapitalisation efforts succeed despite the controversies, or will the ongoing investigations prove to be a major roadblock for the bank and its new government owners?
Analyst Want Clarity from Apex Bank
As Union Bank moves forward, the Nigerian public will demand answers, not only about the financial capacity of Titan Trust Bank and its owners but also about the future direction of one of Nigeria’s oldest and most respected financial institutions.
A forensic accountant, Sunday Enenche, said, “If the action of the CBN is a revocation, then return the money of the investors. If it is a bank failure, the NDIC (Nigeria Deposit Insurance Corporation) and AMCON should move in, as we have seen in previous resolutions.”
A sub-Saharan Africa’s banking research analyst at Vetiva Capital, Olumide Sole, was quoted as saying the dissolution of the boards of the three banks “is not good generally for the banking system in Nigeria, as it could breed distrust in the system.”
The CBN is expected to inform Nigerians in the coming days or weeks whether the new appointees are proxies to Vink, Savara and Lemo, or whose interests the new appointees serve.
Sunday Michael Ogwu is a Nigerian journalist and editor of Pinnacle Daily. He is known for his work in business and economic reporting. He has held editorial roles in prominent Nigerian media outlets, where he has focused on economic policy, financial markets, and developmental issues affecting Nigeria and Africa more broadly.
