Union Bank has carried the burden of Nigerians’ financial and banking needs for over a century. It is not just a financial institution, it is a glorious monument and beautiful relic that echoes Nigeria’s aching colonial past and the nation’s post-colonial halcyon years. It’s a bank that straddles many generations of customers. After more than ten decades of progressive, efficient and reliable banking and an immeasurable contribution to the growth and expansion of the nation’s banking sector which engendered the creation of a plethora of new generation banks, one of Nigeria’s premier and leading tier one financial institutions, is facing a new dispensation.
The complex Titan Trust Bank acquisition of Union Bank
Treachery, hostile takeover, cutthroat competition and underhanded business strategy are staples of the corporate world, not less in the Nigerian banking sector. The history of the Nigerian banking industry is awash with chilling gamesmanship, dirty horse-trading and unpalatable compromises. And it is this entangled road and crooked path that the Titan Trust Bank acquisition of Union Bank followed. In 2021, Titan Trust acquired a 93.41% stake in Union Bank, sending a shock wave across the banking sector. The acquisition meant Titan Trust Bank had met statutory and regulatory requirements to carry out a Mandatory Takeover Offer (MTO). Union Bank was removed from the Nigerian Exchange (NGX) in 2023 after 52 years.
However, the acquisition raised eyebrows among stakeholders, with many wondering how a new, small, obscure bank with fewer than 500 employees was able to orchestrate the takeover of a 108-year-old bank. Many suspected foul play. It did not take long for those who cast doubt on the legality and fairness of the deal to be vindicated. But the deal has been finalised and the deed has been done. The transaction was later dogged by scandal. It was later discovered that Titan Trust Bank was connected to CBN Governor Godwin Emefiele.
According to a CBN Special Investigation Report, the proxies of Emefiele were involved in setting up Titan Trust Bank and masterminding the acquisition of Union Bank. After the details of the shady and illegal hostile takeover came to public knowledge, the apex bank, in January 2024, sacked the boards of both banks. It attributed the decision to regulatory non-compliance and governance failures.
Yetunde Oni was subsequently appointed as the new Managing Director and Chief Executive Officer of Union Bank, charged with managing the institution through regulatory reforms and recapitalisation efforts.
However, despite the acquisition, Titan Trust Bank has chosen to retain the name of the Union Bank for brand visibility, goodwill and corporate bragging rights. With the official completion of the acquisition on Monday and approval by the CBN, the operation of Titan Trust Bank’s operations and assets will now be absorbed into Union Bank, effectively ending its operations as a bank.
Following the merger announcement, Titan Trust Bank changed its name across digital platforms, including X (formerly Twitter), with a post stating: “Titan Trust Bank is Now Union Bank of Nigeria!” Customers have been assured that account details remain unchanged and services will continue as before. The bank underscored a smooth transition with an accelerated push toward enhanced digital banking solutions.
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