Union Bank of Nigeria has reassured customers and stakeholders of operational stability and the safety of deposits following recent remarks by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, concerning lenders under regulatory oversight.
In a statement issued on Wednesday, the bank said the CBN governor’s comments were consistent with its previous communications, stressing that it remains operationally sound and compliant with regulatory requirements.
At the end of the Monetary Policy Committee meeting on Tuesday, Cardoso explained that financial institutions currently under regulatory intervention face unique legal and structural considerations. According to him, such banks may require a differentiated recapitalisation timeline compared to others that had longer preparation periods.
“The other group that I think I would be remiss not to mention are the institutions which are currently undertaking regulatory intervention with certain legal and structural considerations that have naturally influenced the sequencing of their recapitalisation actions,” Cardoso said.
He added that the apex bank remains actively engaged with all relevant stakeholders to ensure orderly and credible outcomes while safeguarding financial stability.
Reacting to the development, Union Bank’s Chief Brand and Marketing Officer, Olufunmilola Aluko, said the lender continues to operate under strong supervisory engagement without disruption to services.
“The governor’s remarks reinforce what has consistently been our position in all engagements with stakeholders. 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,” she said.
Aluko reiterated that customer deposits remain safe and secure, noting that the bank is working transparently with regulators toward full compliance under the recapitalisation 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.
In January 2024, the CBN dissolved the boards of Union Bank, Keystone Bank and Polaris Bank over infractions including regulatory non-compliance, corporate governance failures, and actions deemed to pose risks to financial stability.
Meanwhile, Cardoso disclosed after the MPC meeting that 20 banks have fully met the new minimum capital requirements, while 13 others are at advanced stages of raising funds.
Under the March 2024 recapitalisation directive, banks with international licences must raise their minimum paid-up capital to N500bn, while national banks are required to meet a N200bn threshold before the March 31, 2026 deadline.
Regional commercial and merchant banks are expected to maintain a minimum capital base of N50bn, while non-interest banks must hold N20bn for national licences and N10bn for regional licences.
