By Coolnews Nigeria Business Desk
The Federal Government of Nigeria has emerged as the new owner of Union Bank of Nigeria, sealing months of boardroom drama and public controversy over its troubled acquisition by Titan Trust Bank (TTB).
The discreet takeover, reportedly approved by President Bola Tinubu in January 2024, has sparked concerns about transparency, ownership structure, and the future stability of one of Nigeria’s oldest financial institutions.
How Atlas Mara Exited and Titan Trust Rose
Founded in 1917, Union Bank stood for decades as a symbol of stability until 2022, when Titan Trust Bank — a relatively new player — stunned the market by acquiring a 93.41% controlling stake from Atlas Mara and other shareholders.
Backed by Tropical General Investments (TGI) Ltd, the deal looked straightforward. Atlas Mara, co-founded by ex-Barclays CEO Bob Diamond, had first entered Union Bank in 2014 with a 20.9% stake, growing it to nearly 49% before its final exit in 2021.
By mid-2022, Titan Trust secured regulatory approvals, completed the acquisition, and by November 2023, Union Bank was delisted from the Nigerian Stock Exchange. But doubts soon mounted over Titan Trust’s financial muscle and the true source of funds behind the deal.
Obazee’s Probe and Troubling Discoveries
In July 2023, President Tinubu appointed Jim Obazee as Special Investigator into alleged corruption at the Central Bank of Nigeria (CBN) and related agencies.
His probe turned the spotlight on the Union Bank deal. Findings suggested that government funds were secretly channelled through private banks, raising eyebrows over how Titan Trust, barely a few years old, could finance such a massive acquisition.
Key figures — including Titan Trust chairman Tunde Lemo and foreign investors Cornelius Vink and Rahul Savara — were summoned to account for their equity in the bank. While Lemo honoured the invitation, Vink and Savara repeatedly declined, citing health and personal reasons.
When they failed to provide verifiable proof of ownership, Lemo reportedly suggested a government takeover and even surrendered his own shares in TTB.
By early 2024, on Obazee’s recommendation, President Tinubu approved the transfer of ownership to the CBN, effectively making Union Bank a government-controlled institution.
Afreximbank’s Silence and Legal Vacuum
The alleged role of Afreximbank, said to have provided a $300 million facility for the acquisition, remains shrouded in silence. Curiously, neither Vink nor Savara has challenged the takeover in court — a development that deepens suspicions about the original transaction.
New Board, Old Questions
In January 2024, Union Bank’s old board was dissolved and replaced with an interim team. By mid-2024, a new board was inaugurated with Bayo Adeleke as Chairman and Yetunde Oni as Managing Director.
While the appointments were hailed as a stabilisation move, critics argue that the same unanswered questions remain:
Did the CBN know the full extent of the deal’s opacity?
Are the new directors truly independent, or merely standing in for the same figures under investigation?
What does this mean for Nigeria’s broader banking recapitalisation drive ahead of the March 2026 deadline?
Public Demand for Transparency
The Union Bank saga has become a litmus test for transparency in Nigeria’s financial system.
Analysts and civil society groups are asking:
How did a young bank like TTB acquire such an old institution without clear proof of funds?
Why have the foreign investors avoided scrutiny?
Whose interests are the new Union Bank directors serving — Nigerians, or hidden financiers?
Until these questions are answered, experts warn, Nigeria’s banking sector will continue to wrestle with credibility and trust issues.
The Bigger Picture
Union Bank’s fate now lies in the hands of the federal government. Whether the takeover stabilises the institution or exposes deeper cracks in Nigeria’s financial sector remains to be seen.
For now, the 107-year-old bank — once the pride of Nigerian banking — is state-owned once again, and its future hangs in the balance as the recapitalisation deadline approaches.
📌 Coolnews Nigeria — Business & Economy Desk
Facebook Comments