Titan Trust Bank:Audit Links Multi-Billion Naira Abuse To Old Union Bank Management
Fresh details have emerged on the financial mismanagement that led to the Central Bank of Nigeria’s (CBN) intervention in Union Bank of Nigeria (UBN), with a forensic audit revealing widespread abuses that threatened the lender’s survival.
An investigator’s report showed that the January 2024 takeover, which saw the removal of the bank’s former directors and owners, followed findings of financial misconduct running into several millions of dollars and raising concerns over the bank’s solvency.
According to extracts from the forensic report, the former management engaged in financial reporting manipulation, fraudulent misappropriation of foreign loans, unethical financial engineering and inappropriate withdrawals of depositors’ funds.
It stated that Titan Trust Bank, the investment vehicle linked to the former owners and which later merged with Union Bank, carried an unhedged $300 million loan obtained from Afreximbank.
The exposure was not disclosed but was transferred into Union Bank’s books, leading to further financial adjustments to conceal its impact.
The investigation found that the same $300 million loan was also used as part of over $490 million deployed to acquire shares in Union Bank, while the responsibility for repayment was transferred to the bank itself.
This effectively meant that the bank’s resources were used to finance the purchase of its own shares, it said.
The report added that the former owners did not hedge against foreign exchange risks on the loan or provide for interest and fees, even as they retained full ownership benefits.
This resulted in a revaluation loss of about N396 billion and additional interest and fees exceeding N147 billion by the third quarter of 2025.
Further findings showed that foreign loans sourced from offshore lenders were diverted, with funds meant for on-lending to customers redirected into multi-million dollar swap transactions.
The transactions were carried out with the apex bank without disclosing the original purpose of the funds, while false reports were submitted to the offshore lenders.
The forensic report also uncovered multiple withdrawals from depositors’ and lenders’ funds.
In one case, about $58 million was withdrawn to settle obligations tied to the undisclosed Afreximbank loan, while total inappropriate withdrawals exceeded $100 million, worsening the bank’s currency liquidity position.
A forensic analyst familiar with the report said the intervention by the banking regulator prevented a possible collapse of the bank and wider disruption in the financial system.
The analyst noted that the action provided a “soft window” for the bank to stabilise operations under new leadership.
Subsequent corrective measures have improved the bank’s position, with Union Bank regaining market share and meeting its obligations.
By the third quarter of 2025, the lender had begun a recovery process, with expectations that it could meet the N200 billion capital requirement needed to retain its national banking licence.
In a statement on March 25, 2026, judgment by the Federal High Court in Lagos, the Central Bank said it was reviewing the Certified True Copy of the ruling but maintained that the status of Union Bank remained unchanged under its intervention.
“The CBN assures the public that UBN’s status is unchanged and that it remains fully capable of meeting its obligations to customers, depositors, and all stakeholders,” the apex bank stated.
It added that it would continue to provide regulatory oversight to ensure the bank operates safely and stably while sustaining public confidence in the financial system.
The apex bank also indicated that a limited number of financial institutions remain under regulatory and judicial processes, even as it confirmed the successful recapitalisation of 33 banks.
“All banks remain fully operational, ensuring continued access to banking services for customers,” the CBN said, seeking to calm concerns over institutions undergoing intervention.
Source: The Guardian
