General News
Stewardship, Not Seizure: What the Union Bank Case Is Really About
There is a particular genre of financial commentary that mistakes legal process for a factual verdict. A court delivers a first-instance ruling, procedural questions are raised, and before the ink is dry on the appeal filing, the narrative has already hardened: the regulator overreached, investor confidence is shattered, and Nigeria’s financial governance is on trial before the world.
Much of the commentary currently circulating about Union Bank of Nigeria belongs to that genre. It is not without merit on certain procedural questions. But it is, at its core, incomplete — and incompleteness in financial journalism carries costs that run well beyond the column.
The Acquisition That Started Everything
In 2022, Titan Trust Bank Limited, then chaired by Mr Tunde Lemo, acquired approximately 94 per cent of Union Bank of Nigeria through two Dubai-registered entities: Luxis International DMCC, promoted by Mr Rahul Savara, and Mr Cornelius Vink’s Magna International DMCC, both linked to the Tropical General Investments (TGI) Group.
The US$300 million transaction was financed predominantly through an Afreximbank facility. The CBN’s policy is unambiguous: borrowed funds may not be used to acquire shares in a licensed financial institution. That principle exists because debt-funded acquisitions hollow out the very capital base they purport to build.
That is precisely what happened. A forensic audit found that the Afreximbank loan was ultimately reflected in Union Bank’s own books, with no hedging arrangements against naira depreciation. As the currency weakened, revaluation losses intensified, the capital adequacy ratio deteriorated into negative territory, non-performing loan exposure increased significantly, and a substantial capital shortfall emerged.
Critically, as stated in the Bank’s own Notice of Appeal, a special examination was conducted, and its findings were formally presented to former Managing Director Mudassir Amray and the board then chaired by Farouk Gumel, who were confronted with the institution’s grave financial condition and continuing regulatory infractions. The claim that the CBN acted without evidence before dissolving the board is, on the record, simply not accurate.
The Legal Picture
The CBN acted under Section 34 of BOFIA 2020 and Section 52 of the CBN Act 2007 — broad discretionary executive powers that do not require a special examination as a condition precedent. The Federal High Court’s characterization of those powers as quasi-judicial is itself among the central questions now on appeal. Both the CBN and Union Bank have filed formal appeals.
Union Bank’s own Notice of Appeal, filed the day after judgment on thirteen grounds and argued by Olaniwun Ajayi LP, challenges the ruling on several fronts: that the respondents may never have had locus standi to sue in the first place, under the rule in Foss v. Harbottle; that the application was filed nearly two years after the January 2024 events, well outside the prescribed three-month limitation window; and that the CBN-supervised recapitalisation exercise, mandated under Section 9
of BOFIA, cannot constitute evidence of bad faith. These are not technicalities. They are substantive questions of law that the Court of Appeal must now determine.
The Human Stakes and the Real Question
Behind the legal arguments sit approximately 7.8 million depositors and around 6,450 employees across 281 branches. Union Bank’s own affidavit describes it as a systemically important institution in a precarious financial situation, continuing to rely on CBN forbearance for its existence — a frank admission that validates, rather than undermines, the case for intervention. Meanwhile, critics argue the dispute damages investor confidence. The wider evidence does not support that conclusion.
By April 2026, thirty-three Nigerian banks had raised N4.65 trillion under the CBN’s recapitalisation framework — over ten times the 2004 to 2005 consolidation figure. The Nigerian Exchange All-Share Index rose approximately 29 per cent in the first quarter of 2026 alone. The market has read the CBN’s resolve as stability, not recklessness. Conflating this case with a systemic confidence crisis runs the risk of misleading the very international investors the commentary claims to be protecting.
The structural vulnerability at the centre of this dispute originates not with the regulator but with an acquisition financed with borrowed funds, loaded onto the acquired institution’s balance sheet, and left unhedged against exchange-rate risk. When the CBN stepped in, it was doing what central banks everywhere are expected to do. When Union Bank’s own legally constituted board subsequently filed its own appeal, it was signalling what a properly constituted governance structure recognises as being in the institution’s best interests. Nigeria’s appellate courts — not the court of commentary — are the appropriate arena for resolution.
Union Bank of Nigeria is a 109-year-old institution serving nearly eight million depositors. It is not being dismantled. It is being stabilised under active regulatory supervision, with operations intact and depositors protected. In the language of institutional governance, that is called stewardship. The commentary that mistakes it for anything else does the institution, its depositors, and Nigeria’s financial governance narrative a disservice that will outlast the headlines.
*Bala Rabiu, writes from Kano
Chinonso Akujobi, former staff of Access Bank in Lagos, has been remanded in Ikoyi prison after she was arraigned on a five-count charge bordering on stealing to the tune of N294.5m.
Akujobi who is being prosecuted by the Economic and Financial Crimes Commission (EFCC) was arraigned before Justice I.O. Ijelu of the State High Court sitting in Ikeja, Lagos.
EFCC alleged that Akujobi stole the money between January and December 2025 while under the employment of Access Bank Plc.
As stated in one the charges, the defendant stole the money through unauthorized payments from the general ledger of Access Bank to her account number 0036668871 with the name Chinonso A., Uchechi A. and Florence A., thereby committing an offence of stealing, contrary to Section 280 and punishable under Section 287 of the Criminal Law of Lagos State, 2015.
The defendant pleaded “not guilty“ to the charges when they were read to her.
In view of this, S.M.Yabo, prosecution counsel, asked the court for a trial date and also prayed for the remand of the defendant in a Correctional centre.
Justice Ijelu, thereafter, adjourned the case till October 8, 2026, for the hearing of the bail application and the commencement of trial.
The Judge also ordered that the defendant be remanded in the Ikoyi correctional Centre.
The Nigerian Safety Investigation Bureau (NSIB) says the flight captain of the VMO Aero aircraft that landed on a roadway near Asaba Airport in Delta State told investigators that the observer pilot mistakenly identified the paved road as the runway before touchdown.
The bureau disclosed this in a preliminary report released on Thursday on the June 10 incident, which prompted the Nigeria Civil Aviation Authority (NCAA) to ground the private jet.
The aircraft had seven people on board, including the pilot-in-command (PIC), second-in-command (SIC), an observer pilot, a cabin crew member and three passengers.
According to the report, the aircraft was cleared by Air Traffic Control (ATC) to approach Runway 11 at Asaba Airport after the crew requested a right orbit.
The crew initially discontinued the approach, executed a missed approach and repositioned for a second landing attempt.
NSIB said the crew reported that the aircraft’s navigation systems indicated it was correctly established on the published RNAV Runway 11 approach.
“The PIC and SIC reported that the observer pilot identified the paved surface ahead as the runway,” the report stated.
However, the observer pilot gave investigators a different version of events.
According to NSIB, he said the aircraft remained inside cloud until late in the approach and that the Ground Proximity Warning System (GPWS) repeatedly issued “TERRAIN, TERRAIN, PULL UP” alerts.
He also said he observed a telecommunications mast directly ahead and instructed the flight captain to abandon the approach and climb immediately.
The bureau further disclosed that a cabin crew member reported that one of the passengers became concerned after overhearing discussions among the pilots and asked whether one of them was undergoing training. The passenger was reportedly reassured that all three pilots on board were experienced captains.
NSIB said no abnormal events were reported in the cabin before touchdown.
The aircraft eventually landed at about 8:57 a.m. on an under-construction paved roadway near Asaba Airport instead of the designated runway.
The bureau said its investigation into the incident is ongoing, while the preliminary report highlights conflicting accounts among the cockpit crew over the circumstances that led to the erroneous landing.
Federal High Court in Abuja has adjourned the Federal Government’s alleged tax evasion case against Binance Holdings Ltd. cryptocurrency exchange, until September 24, 2026, to allow both parties more time to pursue an out-of-court settlement.
Justice Emeka Nwite fixed the new date on Thursday after Moses Ideho, counsel to the Federal Government, informed the court that discussions aimed at resolving the dispute amicably were still ongoing.
Ideho, a deputy director of Legal and Prosecution at the Nigeria Revenue Service (formerly the Federal Inland Revenue Service), told the court that the matter, which had been scheduled for a report on settlement or continuation of trial, could not proceed.
According to him, one reason for the delay was the reported elevation of Justice Nwite to the Court of Appeal, while the second was the continued reconciliation efforts between the parties.
“The parties are still exploring settlement in the charge that led to this case,” Ideho told the court.
Sunday Agaji, counsel to Binance, did not oppose the application for adjournment, following which Justice Nwite postponed proceedings until September 24 for either a report on the settlement discussions or continuation of trial.
The case was previously adjourned on May 12 after both the Federal Government and Binance informed the court that negotiations were underway to settle the matter outside the courtroom.
Binance had first indicated its willingness to pursue an amicable resolution on March 24.
The cryptocurrency company was re-arraigned on July 12, 2024, on a four-count charge bordering on alleged tax evasion.
Ayodele Omotilewa, Nigerian representative, pleaded not guilty on behalf of the company.
The re-arraignment followed the removal of Binance executive Tigran Gambaryan and his colleague, Nadeem Anjarwalla, from the charge after the Federal Government amended the case to make Binance Holdings Ltd the sole defendant.
Justice Nwite had, on June 14, 2024, discharged and struck out the names of Gambaryan and Anjarwalla after the prosecution filed the amended charge.
Binance is also facing a separate criminal prosecution by the Economic and Financial Crimes Commission (EFCC), which accuses the company of laundering about $35.4m.
In addition, the Nigeria Revenue Service is pursuing a separate civil suit against Binance before another judge of the Federal High Court, seeking approximately $79.5bn in alleged economic losses linked to the company’s operations in Nigeria.
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