Forensic Audit Reveals Transactions That Triggered CBN Takeover of Union Bank

New details link Union Bank’s former owners to the Central Bank of Nigeria’s decision to dissolve its board in January 2024. A forensic audit report—reviewed by investigators—alleges unorthodox financial engineering, undisclosed foreign loans and a $300 million facility from Afreximbank placed on Union Bank’s balance sheet without proper hedging. Investigators claim proceeds from the facility may have been used to acquire shares in Union Bank, effectively shifting repayment obligations to the lender. Other offshore loans appear to have been diverted into swap transactions, contributing to foreign currency liquidity pressures. These allegations remain untested in court but prompted the CBN’s intervention to protect sector stability. Under new management, Union Bank has since regained market share and is on track to meet enhanced capital requirements. In March 2026, a Federal High Court ruling upheld the CBN’s regulatory measures, confirming the bank’s status under intervention. The apex bank assures the public that Union Bank remains strong, stable and fully capable of serving stakeholders.

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