Titan Trust–Union Bank Deal Under Scrutiny Over Alleged $300m Loan Irregularities

Titan Trust–Union Bank Deal Under Scrutiny Over Alleged $300m Loan Irregularities

What was initially presented as a landmark acquisition in Nigeria’s banking sector is now facing renewed scrutiny, as emerging allegations question the structure and funding of Titan Trust Bank’s 2022 takeover of Union Bank of Nigeria, raising concerns about regulatory compliance, transparency, and depositor safety.

New findings suggest that Titan Trust Bank may have secured a $300 million facility from African Export-Import Bank (Afreximbank) to finance its acquisition of Union Bank of Nigeria. While Titan Trust Bank was listed as the borrower, documents reviewed reportedly indicate that assets linked to Union Bank—including shares and treasury instruments—were used as collateral for the loan.

The arrangement, if confirmed, raises significant regulatory questions, particularly around long-standing banking rules that restrict the use of borrowed funds or target-bank assets in acquisition financing. Industry analysts note that such a structure could expose the acquired institution to financial strain, especially if repayment obligations are tied to its balance sheet.

Sources familiar with the matter further allege that the loan repayment framework may have placed a burden on Union Bank’s financial resources, potentially implicating depositor funds. However, these claims remain unverified and have not been independently confirmed by regulators or the institutions involved.

Attention has also turned to the role of the Central Bank of Nigeria under the leadership of former governor Godwin Emefiele, with suggestions that the transaction may have proceeded despite regulatory red flags. The apex bank has yet to issue a detailed public response addressing the specific allegations tied to the deal structure.

By the third quarter of 2025, reports indicate that macroeconomic pressures—including exchange rate volatility and rising interest rates—may have significantly increased the exposure tied to the original facility, with estimates placing the total obligation above ₦500 billion. Financial experts warn that such escalation, if accurate, could have broader implications for banking sector stability.

The controversy deepened in January 2024 when the Central Bank of Nigeria dissolved the board and management of Union Bank of Nigeria, citing governance concerns. That decision is currently the subject of ongoing legal proceedings, adding another dimension to the unfolding situation.

Ownership structures linked to Titan Trust Bank have also come under renewed attention. The bank, established in 2018, is reportedly backed by offshore entities associated with business figures including Rahul Savara and Cornelius Vink, though no formal findings of wrongdoing have been established against them.

As scrutiny intensifies, stakeholders across the financial sector are calling for greater transparency and regulatory clarity. Whether the allegations are substantiated or not, the situation underscores the importance of robust oversight in high-value banking transactions and the need to safeguard depositor confidence in Nigeria’s financial system.