CBN Intervenes at Union Bank Amid Forensic Audit Findings

The Central Bank of Nigeria (CBN) has intervened at Union Bank due to concerns raised by a forensic audit indicating financial practices that threaten the bank's solvency. The audit, which will be reviewed in January 2024, highlighted issues related to financial reporting and management of foreign loans, including a $300 million loan from the Africa Export-Import Bank.

This loan is part of Union Bank's financial structure and raises concerns about the bank's operational integrity. The forensic investigation identified transactions involving foreign loans and offshore banks, which could impact the bank's liquidity.

The CBN's intervention is intended to stabilize Union Bank and limit potential wider impacts on the financial services industry. The new management is expected to redirect the bank's affairs and improve its market position, aiming to meet a N200 billion capital requirement by the third quarter of 2025.

The CBN assures that Union Bank remains capable of meeting its obligations to customers and stakeholders.