Union Bank of Nigeria Plc has officially completed its merger with TitanTrust Bank Limited and is now preparing to secure a new core investor, a move seen as crucial for its survival in Nigeria’s increasingly competitive banking sector.
The century-old lender confirmed on Sunday that it had obtained final approval from the Central Bank of Nigeria (CBN), formally sealing a process that had been in motion since 2022 but was delayed by ownership and governance concerns.
The CBN, which placed both banks under regulatory control in 2023, oversaw the merger process, effectively reshaping the ownership structure and excluding Tropical General Investments (TGI) Group — the original shareholder of TitanTrust.
Search for Capital Amid Recapitalization Drive
The absence of TGI means Union Bank must now find a credible long-term investor to inject fresh capital, restore confidence, and provide strategic direction.
The development comes as Nigerian banks face a recapitalization deadline set by the CBN, requiring the industry to raise about ₦4.1 trillion within 24 months. So far, lenders have raised about ₦2.8 trillion, leaving a gap of over ₦1.3 trillionwith only six months left.
Analysts say Union Bank’s next investor will not only determine its competitiveness but also signal broader confidence in Nigeria’s financial sector.
Union Bank’s Challenges and Opportunities
Founded in 1917, Union Bank is one of Nigeria’s oldest lenders, but in recent decades it has struggled with declining market share, governance tussles, and stiff competition from younger, more agile rivals.
TitanTrust, licensed in 2019, shocked the industry when it acquired a majority stake in Union Bank just two years later. However, regulatory scrutiny and governance questions forced the CBN’s intervention, culminating in the just-concluded merger.
Industry experts say Union Bank still has valuable assets — including its extensive branch network and loyal customer base — which could attract both domestic institutional investors and foreign banking groups looking to expand into Africa’s largest economy.
What’s Next
Union Bank has not disclosed whether it will prioritize local or foreign investors, but discussions are said to be underway. In the meantime, the lender is focusing on completing its operational integration with TitanTrust and stabilizing governance structures.
If successful, the bank’s recapitalization and investor repositioning could mark a turning point, restoring its relevance in Nigeria’s rapidly consolidating financial system.
