Union Bank of Nigeria Plc is preparing to seek a new core investor following the completion of its long-awaited merger with TitanTrust Bank Limited.
According to multiple sources who spoke to Naijaonpoint, the move is part of a broader effort to reposition the century-old lender after a turbulent two years under the control of the Central Bank of Nigeria (CBN).
The bank confirmed in a statement that it had secured final regulatory approval from the apex bank, officially completing the merger that integrates TitanTrust into Union Bank’s operations.
The merger, which had been in the works since 2022, was delayed by governance and ownership challenges that eventually drew in the CBN.
Union Bank and TitanTrust were both placed under CBN control in 2023 after questions were raised about ownership structures and regulatory compliance.
The absence of TGI means that Union Bank must now seek a credible core investor to provide long-term stability, strategic direction, and capital support.
Insiders note that discussions with potential investors are already underway.
The hunt for a new investor comes against the backdrop of the CBN’s recapitalization directive, which requires banks to shore up their capital bases within 24 months.
The target for the industry is estimated at about N4.1 trillion, and so far, banks have raised around N2.8 trillion, leaving a gap of more than N1.3 trillion with just six months left to the deadline.
Union Bank’s quest for a core investor is therefore not just about replacing old shareholders — it is also about survival and competitiveness in an increasingly consolidated industry.
Analysts argue that only banks with deep-pocketed investors and strong governance will emerge stronger after the recapitalization exercise.
Founded in 1917, Union Bank remains one of Nigeria’s oldest financial institutions, with over a century of service to individuals, corporates, and government entities.
But the acquisition quickly ran into regulatory headwinds, setting the stage for the CBN’s intervention in 2023 and eventually leading to the just-concluded merger.
The significance of Union Bank’s next steps cannot be overstated. Without a core investor, the bank risks being left behind in a market where its peers are aggressively raising capital through rights issues, public offers, and private placements. A credible investor could help:
Industry experts note that Union Bank’s wide branch network and legacy customer base remain valuable assets.
These strengths could appeal to both domestic institutional investors and foreign banking groups seeking to expand their footprint in Africa’s largest economy.
These strengths could appeal to both domestic institutional investors and foreign banking groups seeking to expand their footprint in Africa’s largest economy.
The merger and investor search come at a time of intense activity in Nigeria’s banking sector.
With six months remaining before the deadline, the race is on to cover the remaining N1.3 trillion shortfall.
Union Bank has yet to announce the structure of its investor search, whether it will prioritize domestic institutional investors, foreign banking groups, or private equity firms.