Union Bank Takeover: Inside FG’s Quiet Acquisition Amid Titan Trust Controversy
- The takeover of Union Bank by the Nigerian government has thrown up several questions amid the recapitalisation push by the CBN
- The controversial acquisition raised questions of transparency and ownership of a young Titan Trust Bank
- Now, after Union Bank announced the takeover of Titan Trust Bank, analysts are asking even bigger questions as the recapitalisation drive continues
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
The Federal Government has emerged as the new owner of Union Bank of Nigeria following months of controversy surrounding its acquisition by Titan Trust Bank (TTB).
The development, quietly approved by President Bola Tinubu in January 2024, has raised fresh questions about ownership, transparency, and the future of one of Nigeria’s oldest banks.
Source: Getty Images
Atlas Mara’s exit and Titan Trust’s rise
Union Bank, founded in 1917, had enjoyed relative calm until 2022, when Titan Trust Bank, a relatively young lender, acquired a 93.41% stake from Atlas Mara and other shareholders.
According to a report by Proshare, the deal, backed by Tropical General Investments (TGI) Ltd, appeared straightforward but has since spiralled into a full-blown scandal.
Atlas Mara, co-founded by former Barclays CEO Bob Diamond, first entered Union Bank in 2014 when it purchased a 20.9% stake from AMCON. Over the years, it grew its holding to nearly 49%.
In December 2021, Atlas Mara and other major shareholders sold their controlling stake to Titan Trust.
By June 2022, with regulatory approvals secured, TTB completed the transaction, eventually delisting Union Bank from the Nigerian Stock Exchange in November 2023.
However, behind the scenes, concerns were already brewing about Titan Trust’s financial capacity and the true source of funds used for the acquisition.
CBN probe and Obazee’s findings
In July 2023, President Tinubu appointed Jim Obazee as Special Investigator to probe alleged corruption within the Central Bank of Nigeria (CBN) and other agencies. His investigation quickly zeroed in on Union Bank and Titan Trust.
Obazee discovered evidence of government funds being diverted into private banks, raising doubts about how Titan Trust — a bank with only a few years of operations — could afford to buy an institution as large as Union Bank.
Key figures, including Titan Trust chairman Tunde Lemo and foreign investors Cornelius Vink and Rahul Savara, were invited to defend the source of their $190 million equity in Union Bank.
While Lemo appeared before investigators, Vink and Savara repeatedly shunned invitations, citing medical and personal reasons.
Owners under scrutiny, government steps in
Faced with their refusal to appear and provide proof of ownership, Lemo proposed that the federal government take over their shares. He also voluntarily forfeited his own equity in Titan Trust Bank during questioning at the DSS.
With no credible defence of the acquisition funds, Obazee recommended a full takeover by the federal government. President Tinubu approved the move, making the CBN the new owner of Union Bank by early 2024.
The silence of Afreximbank, which allegedly provided a $300 million facility for the acquisition, has further deepened suspicions. Notably, neither Vink nor Savara has challenged the takeover in court.
New management, old questions
In January 2024, Union Bank’s former board was dissolved, and an interim management team was appointed.
By mid-2024, a new board was constituted with Bayo Adeleke as chairman and Yetunde Oni as managing director. Other members include independent directors and executive directors tasked with stabilising the bank.
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But critics argue that the move has created more confusion. Was the CBN itself aware of the details behind the takeover, or are the new appointees acting as proxies for the same figures under investigation?
With Nigeria’s banking recapitalisation deadline set for March 2026, clarity on Union Bank’s true ownership remains urgent.
Nigerians demand transparency
The Union Bank saga highlights broader concerns about transparency in Nigeria’s financial sector.
How could a young lender like Titan Trust acquire such a historic bank without clear proof of funds? Why have key foreign investors avoided scrutiny?
And most importantly, whose interests are the newly appointed Union Bank directors truly serving?
Until these questions are answered, Nigeria’s banking sector will continue to grapple with credibility issues.
For now, Union Bank is government-owned, but its future, and the fate of the figures once behind Titan Trust, remains uncertain.
Union Bank completes Titan Trust Bank merger
Legit.ng earlier reported that ahead of the March 31, 2026, banking recapitalisation deadline by the Central Bank of Nigeria (CBN), one of Nigeria’s oldest banks, Union Bank, has announced the successful merger with Titan Trust Bank.
The development follows a final approval from the CBN, sealing the final merger of the two banks.
According to a statement from Union Bank’s Chief Brand and Marketing Officer, Olufunmilayo Aluko, the merger concluded a process that began in 2021 and was expected to position the firm as a stronger force in Nigeria’s financial sector.
Source: Legit.ng
