Fresh details have emerged on the financial challenges that affected Union Bank of Nigeria, with reports alleging widespread mismanagement and regulatory breaches by former directors and owners.
According to findings from investigators, the bank’s previous leadership allegedly concealed significant losses estimated at over ₦250 billion, while also taking on a $300 million foreign loan without adequate safeguards, leaving the institution financially exposed.
The report further alleged that funds were improperly utilised, including instances where the bank’s own resources were used to acquire its shares, raising concerns over governance and compliance with financial regulations.
Investigators also pointed to the withdrawal of over $100 million through questionable transactions, alongside the diversion of loans meant for customers into unauthorised deals. It was further alleged that inaccurate reports were submitted to lenders, undermining transparency and accountability.
By 2025, the cumulative impact of these actions reportedly resulted in losses approaching ₦400 billion, with additional liabilities exceeding ₦147 billion.
The Central Bank of Nigeria, CBN subsequently intervened to stabilise the bank and prevent systemic risks to the broader financial sector.
While the bank has since shown signs of recovery, analysts note that the situation highlights the critical importance of strong corporate governance, regulatory oversight, and transparency in Nigeria’s banking industry.
