A forensic audit report has revealed widespread financial irregularities under Union Bank of Nigeria’s former owners and directors, prompting the Central Bank of Nigeria (CBN) to dissolve the bank’s board and management in January 2024.
The report alleges questionable transactions, including a $300 million facility from Afreximbank that was transferred to Union Bank’s balance sheet without full disclosure, exposing the bank to foreign exchange risks according to vangauard.com
.Key Findings:Unhedged Facility: The $300 million facility from Afreximbank was reportedly unhedged, posing foreign exchange risks to Union Bank.
Questionable Share Acquisition: Proceeds from the facility may have been linked to acquiring shares in Union Bank, raising corporate governance concerns.
Undisclosed Transactions: Foreign loans were allegedly diverted into swap transactions without full disclosure to regulators and lenders.The CBN’s intervention aimed to prevent systemic risks to the banking sector.
Despite allegations, no criminal convictions have been announced, and the former directors and owners have not commented publicly vanguardngr.com
nairaland.com
.Update: A Federal High Court ruling on March 25, 2026, declared the CBN’s intervention unlawful, ordering the reinstatement of the former board. The CBN has appealed the judgment, assuring the public that Union Bank remains stable and operational
