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Union Bank acquisition raises Fresh Concerns

Union Bank acquisition raises Fresh Concerns

It became apparent as figures started pouring out that there is more than meets the eyes in the recent acquisition of one of Nigeria’s oldest financial institution, Union Bank, by Titan Trust Bank.

After a concerned former staff drew our attention with an Op-ed titled “Titan Trust bank acquisition of Union Bank”, it became clear that the figures sold to the public are not right.

According to what we have been told, FGN had first injected a whooping 300 billion naira to stabilize or recapitalize Union Bank. It is reported that both the Federal ministry of finance and CBN can confirm this.

After the initial investment of N300b, another 239 billion was shoveled into the bank by Amcon to purchase what they said are toxic assets on the banks books.

Now the big question is how did FGN that invested a whooping 300 billion of tax payers money only receive 21 percent of the bank, while Union Global Partners (a foreign investment vehicle) got 64 percent when it only invested 78 billion naira.

Is this not another case of boju-boju? The more you look the less you see?

Why is anybody not asking why Tunde Lemo who was deputy governor of CBN at the time is being allowed to take part of the acquisition of the very same Bank that he is vested in as a beneficiary?

Tunde Lemo

What is really happening to Nigeria as a whole? No sector of the country is free of corruption. And these are korokoro corruption. Nobody is hiding it anymore.

Why do we have corporate governance provision?

In 2011, Union Bank was a group with 7 subsidiaries under its belt… but right now it is just a single entity. What happened to the several subsidiaries and their assets? Where did they go and under what terms and conditions were they disposed? Also, who approved of their acquisition?

Mr. Faruk Gumel is present Chairman of NSIA, which is a state establishment. The same Faruk is a Group Executive Director with TGI, who are a major stakeholder in Titan Bank – the recent buyers of Union Bank. Someone please explain how this is permissible by the Nigerian corporate governance provision?

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Faruk Gumel

Why are the members of the National Assembly not saying anything. Union Bank is not just another bank. We all grew up chanting the slogan “Big, Strong, Reliable” in our homes. Now the same slogan has been thrown out the window.

Can someone bring this to President Buhari’s attention?? Well, that one sef na another mata. Even if dem tell am, he might just be looking at you like….Wetin dis one dey talk? – If nor be about cattle. Baba no wan hear anything.

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