Union Bank of Nigeria has reassured customers and stakeholders that deposits remain safe, and operations continue uninterrupted, following CBN Governor Olayemi Cardoso’s recent comments on banks under regulatory intervention.
The statement comes as Nigeria’s banking sector accelerates toward a March 31, 2026, recapitalization deadline, with the apex bank reporting significant progress among institutions.
The reassurance from Union Bank follows Cardoso’s comments at the conclusion of the Monetary Policy Committee (MPC) meeting on Tuesday, where he highlighted that certain lenders under regulatory oversight—due to unique structural and legal challenges—would follow a differentiated timeline for meeting new capital requirements compared to those with longer preparation periods.
“The other group that I think I would be remiss not to mention are the institutions that are currently undertaking regulatory intervention with certain legal and structural considerations that have naturally influenced the sequencing of their recapitalization actions,” Cardoso stated. He underscored the CBN’s commitment to engaging stakeholders for an “orderly and credible outcome while maintaining financial stability.”
Union Bank’s Chief Brand and Marketing Officer, Olufunmilola Aluko, echoed this sentiment in a Wednesday statement, aligning the bank’s position with the governor’s remarks. “The governor’s remarks reinforce what has consistently been our position in all engagements with stakeholders,” Aluko said. “Union Bank remains under strong regulatory oversight and active supervisory engagement.
The bank is a going concern with a resilient franchise, stable operations, and uninterrupted service delivery across all channels. We have maintained, and continue to maintain, that all customer deposits are safe and secure.”
Aluko further elaborated that the bank is collaborating transparently with regulators to achieve full compliance within the recapitalization framework. “That position has not changed.
The bank continues to operate within the established regulatory framework, working transparently and constructively with the Central Bank of Nigeria towards full compliance in line with the applicable structure,” she added. “We recognize the importance of regulatory engagement in ensuring financial system stability. As engagements progress, the bank will provide updates while maintaining its commitment to customer protection and service continuity.”
This development stems from a broader regulatory overhaul initiated by the CBN. In January 2024, the apex bank dissolved the boards of Union Bank, Keystone Bank, and Polaris Bank, citing infractions including regulatory non-compliance, corporate governance failures, and activities threatening financial stability. The move was part of efforts to restore confidence in the sector amid economic pressures.
Fast-forward to March 2024, when the CBN mandated heightened capital bases to bolster resilience against global and domestic risks. Banks with international licenses must now hold at least N500 billion in minimum paid-up capital, while national authorization requires N200 billion. Regional commercial and merchant banks face a N50 billion threshold, and non-interest banks need N20 billion for national licenses or N10 billion for regional ones—all by the looming March 31, 2026, deadline.
Progress has been notable, according to Cardoso’s MPC update. Twenty banks have already fully met the new requirements, with an additional 13 at advanced stages of their capital-raising processes. Overall, the sector has raised over N4 trillion, signaling a robust response as the deadline approaches.
Some reports suggest the number of compliant banks could be as high as 23, though official CBN figures stick to 20 fully recapitalized institutions. Cardoso has repeatedly assured the public that depositors’ funds remain protected, even as non-compliant banks risk license downgrades or mergers.
Analysts view Union Bank’s statement as a strategic move to maintain customer trust amid heightened scrutiny. The bank, one of Nigeria’s oldest financial institutions with roots dating back to 1917, has been navigating these challenges while emphasizing its operational strength.
Industry experts note that the differentiated timelines for intervened banks like Union could provide breathing room, allowing them to align with the CBN’s vision for a more resilient sector without disrupting services.
The CBN’s recapitalization drive is part of a larger strategy to fortify Nigeria’s financial system against vulnerabilities, including cyber threats and credit risks, as outlined in recent policy discussions. With the deadline just over a month away, stakeholders are watching closely for further updates, but Union Bank’s proactive communication underscores a commitment to transparency in turbulent times.
As Nigeria’s economy grapples with inflation and currency fluctuations, the successful recapitalization of its banks could pave the way for increased lending and economic growth. For now, Union Bank customers can take solace in the bank’s affirmations—and the CBN’s oversight—that their funds are secure.
WHAT YOU SHOULD KNOW
Union Bank of Nigeria remains stable, fully operational, and safe for customers despite being under ongoing CBN regulatory oversight and intervention. All customer deposits are secure, and the bank is actively working with regulators toward recapitalization compliance.
