“Fraudulent” now seems synonymous with Union Bank, a financial institution that once prided itself on trust and reliability since its founding in 1917. Across Nigeria, complaints about the bank’s operational failures flood social media and other platforms, with one common thread: Union Bank’s corporate governance appears to be the root of its systemic dysfunction.
Earlier this week, Union Bank announced the appointment of new executive and non-executive directors. Yet, despite this change, long-standing corruption and unresolved fraud allegations remain unaddressed, casting doubt on whether the new leadership will bring meaningful reform or simply serve as a façade.
A glaring instance of Union Bank’s negligence involves tens of billions of naira belonging to the estate of a deceased customer which remains unpaid, with the bank blatantly refusing two orders of the Federal High Court to produce the same. The bank has demonstrated no accountability or urgency to resolve the issue. Choosing to instead appeal a trial court award of N13 billion on the argument that the court shouldn’t hear the matter because too much time has passed since their customer died.
In 2021, a user on X (formerly Twitter), Gina, accused the bank of unlawfully converting her USD savings to naira without her consent, effectively stealing over ₦500,000. She escalated the matter publicly, warning Nigerians to avoid Union Bank at all costs. Yet, no resolution or accountability emerged, reinforcing a perception that customer grievances are met with apathy or outright disdain.
The rot appears systemic. Numerous media reports over the past year have highlighted instances of fraud by lower-level staff, raising critical questions about the bank’s leadership. Are the board and executives complicit in enabling a culture of impunity, or are they merely incompetent? Union Bank’s inability—or refusal—to root out these issues suggests a failure at the highest levels of governance.
The recent board changes, touted as a step toward strengthening leadership, feel more like a game of musical chairs than a genuine effort to reform. As Mrs. Yetunde B. Oni, a spokesperson for the bank, put it: “These appointments are a testament to Union Bank’s unwavering commitment to building a robust leadership framework.” Yet her statement rings hollow against a backdrop of unresolved customer complaints and allegations of fraud.
In June 2024, the Economic and Financial Crimes Commission (EFCC) arrested two former Union Bank staff in Makurdi, Benue State, over the theft of ₦4,199,500 from the account of a deceased customer, Emmanuel Azer Agenna. According to EFCC spokesperson Dele Oyewale, the suspects—Idah Ogoh and Agbo Okwute—colluded to procure a debit card on the deceased’s account, making unauthorized withdrawals. This case underscores the systemic lapses within Union Bank, where even deceased customers are not spared from fraudulent activity.
One such example is the case of a customer who, just last month, was scammed at an ATM in Iyana Ipaja and lost over ₦182,500. Despite escalating the issue, the customer received no resolution or even meaningful communication from the bank.
Transparency is a glaring deficiency at Union Bank, and this flaw reflects directly on its board of directors. The institution’s leadership appears preoccupied with consolidating power while neglecting their core duty of safeguarding customers’ trust and addressing operational failures.
A few days ago, another disgruntled customer, Udeme Okono, publicly accused the bank of fraudulently debiting his account twice for over ₦204,000. This pattern of unapproved withdrawals and lack of accountability has become emblematic of Union Bank’s operations.
According to Seun Ogundele, a financial markets analyst based in the United States, he hopes Union Bank begins to apply a top down approach to integrity from a corporate governance perspective. He said, “it’s interesting that Union Bank has changed its board members after the Federal Government accused former CBN Governor, Godwin Emefiele of being the promoter/financier of the acquisition of the institution by Titan Trust Bank.
“Hopefully the board entrenches proper ethics and values into its cadre. There numerous fraud allegations and judgments against the bank, especially dealing with estate fraud, breach of fiduciary duty, and theft of customer assets is appalling. This is the oldest financial institution in Nigeria and if you read some of the fraud committed by its personnel and agents you’d think it was run by Yahoo Yahoo boys.
“Whichever way you slice it, the bank needs to sit up and demonstrate to stakeholders, investors, and regulators that it’s no longer business as usual”, he concluded.