Union Bank Releases Strong Statement After CBN Announced Banks Which Met Recapitalisation Goal
- Union Bank has reassured customers that their deposits are secure amidst CBN's recapitalisation remarks
- CBN governor clarified distinct timelines for banks under regulatory intervention as the recapitalisation heats up
- Union Bank emphasizes transparency and commitment to regulatory compliance during recapitalisation
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Union Bank of Nigeria has moved to calm concerns following recent remarks by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, regarding banks under regulatory oversight and the ongoing recapitalisation exercise.
In a statement issued on Wednesday, February 25, 2026, the lender reaffirmed its operational stability and assured customers that their deposits remain secure.
Source: Original
CBN explains different recapitalisation timelines
The bank said the CBN governor’s comments align with its consistent communication to stakeholders and do not signal any disruption to its services.
According to the bank, it remains fully operational, compliant with regulatory frameworks, and engaged constructively with the apex regulator.
Speaking at the end of the Monetary Policy Committee meeting on February 24, 2026, Cardoso clarified that financial institutions currently under regulatory intervention face unique legal and structural circumstances.
These factors, he explained, justify a different recapitalisation timeline compared to banks that began preparations when the new capital requirements were first announced over two years ago.
He stressed that it would be unreasonable to expect such institutions to follow the same sequence as others that had ample time to execute their capital-raising plans.
The CBN, he added, remains actively engaged with all stakeholders to ensure orderly and credible outcomes while safeguarding financial system stability.
“We remain a going concern” - Union Bank
Reacting to the development, Union Bank’s Chief Brand and Marketing Officer, Olufunmilola Aluko, reiterated that the bank is under strong supervisory engagement but continues to deliver uninterrupted services across all channels.
She described the institution as a “going concern” with a resilient franchise and stable operations.
The bank, she said, has consistently maintained that customer deposits are safe and secure, and that position remains unchanged.
Aluko further noted that Union Bank is working transparently with regulators toward full compliance under the recapitalisation framework.
She emphasised that regulatory engagement plays a vital role in preserving financial system stability and assured stakeholders that updates would be provided as discussions progress.
Background: Regulatory actions and capital targets
In January 2024, the CBN dissolved the boards of Union Bank and two other lenders over issues ranging from regulatory non-compliance and corporate governance lapses to actions deemed capable of threatening financial stability.
Meanwhile, the apex bank disclosed that 20 banks have fully met the new minimum capital requirements, while 13 others are at advanced stages of their capital-raising processes.
Under the revised framework announced in March 2024, banks with international licences are required to raise their minimum paid-up capital to N500 billion.
National banks must meet a N200 billion threshold before the March 31, 2026, deadline.
Regional commercial and merchant banks are expected to hold at least N50 billion, while non-interest banks must maintain N20 billion for national licences and N10 billion for regional operations.
As the deadline approaches, Union Bank’s statement appears aimed at reinforcing confidence among customers and investors, underscoring its commitment to regulatory compliance, operational continuity and the protection of depositors’ funds.
Source: Twitter
Acquisitions loom as 13 banks face uncertainty
Legit.ng earlier reported that with the March 31, 2026, recapitalisation deadline set by the Central Bank of Nigeria drawing closer, uncertainty hangs over 13 banks still working to meet the new minimum capital thresholds.
At the close of the latest Monetary Policy Committee meeting, CBN Governor Olayemi Cardoso disclosed that 20 banks have fully satisfied the revised capital requirements.
Another 13 lenders, he said, are at advanced stages of compliance, raising hopes that widespread disruption may yet be avoided.
Source: Legit.ng
