Legal Dispute Over Titan Trust Bank's Union Bank Acquisition

The Union Bank case centers on the acquisition by Titan Trust Bank, which, in 2022, acquired approximately 94% of Union Bank Nigeria through a transaction valued at $300 million, facilitated predominantly by Afreximbank. The Central Bank of Nigeria (CBN) is facing criticism for its regulatory actions, particularly regarding the financial condition of Union Bank and the legality of its oversight.

A forensic audit revealed that loans from Afreximbank reflected on Union Bank's books without adequate hedging against currency depreciation, leading to significant capital shortfalls and increased non-performing loan exposure. Union Bank has filed a formal appeal against a judgment that questioned the CBN's authority and actions, claiming that the CBN's regulatory framework lacks evidence of bad faith.

The case impacts approximately 7-8 million depositors and 6,450 employees across 281 branches of Union Bank, raising concerns about investor confidence in Nigeria's financial system.