The 2022 acquisition of Union Bank of Nigeria by Titan Trust Bank has come under renewed scrutiny following emerging claims about how the $300 million takeover deal was financed.
At the time, the transaction was widely presented as a landmark move, a relatively young financial institution acquiring one of Nigeria’s oldest banks. However, recent findings circulating in financial and regulatory circles suggest the structure of the deal may have been more complex than initially disclosed.
According to the claims, Titan Trust Bank secured a $300 million facility from African Export-Import Bank (Afreximbank) to fund the acquisition. While Titan Trust was listed as the borrower, the reports allege that assets linked to Union Bank, including shares and treasury instruments, were used as collateral for the loan.
If substantiated, this would imply that the acquired institution may have been indirectly leveraged to finance its own purchase, an arrangement that raises questions about regulatory compliance and financial governance.
Further allegations suggest that the loan structure could require repayments to be serviced through Union Bank’s financial resources, potentially placing pressure on its balance sheet. Analysts warn that such a structure, if confirmed, could have implications for depositor confidence and systemic stability.
The deal has also drawn attention to the role of regulators at the time. Former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has been mentioned in connection with the approval process, though no official finding has established wrongdoing.
Industry observers note that Nigerian banking regulations generally restrict the use of borrowed funds for acquisitions of financial institutions, making the allegations particularly sensitive.
By the third quarter of 2025, reports indicate that macroeconomic pressures, including exchange rate volatility and rising interest costs, may have significantly increased the exposure tied to the facility, with estimates suggesting it exceeded ₦500 billion.
Separately, governance concerns intensified in January 2024 when the CBN dissolved the board and management of Union Bank, a decision that is currently subject to legal challenge.
Ownership structures surrounding Titan Trust Bank have also come under scrutiny, with links to offshore entities and investors such as Rahul Savara and Cornelius Vink drawing attention.
As of now, neither Titan Trust Bank nor Union Bank has publicly confirmed the specific allegations regarding the financing structure. Regulatory authorities have also yet to issue a detailed public report addressing the claims.
The unfolding situation raises broader questions about transparency, regulatory oversight, and risk management within Nigeria’s banking sector, issues that analysts say will likely remain in focus as more details emerge.
