Union Bank of Nigeria has stepped forward to reassure its customers and stakeholders that its operations remain stable and that deposits are fully secure, following comments by Central Bank of Nigeria Governor Olayemi Cardoso regarding banks currently under regulatory oversight.
In a statement issued Wednesday, the bank said Cardoso’s remarks aligned with what it has consistently communicated to its stakeholders, stressing that it continues to operate soundly within all regulatory requirements.
The CBN governor had spoken at the close of the Monetary Policy Committee meeting on Tuesday, noting that banks under regulatory intervention face distinct structural and legal circumstances that justify a different recapitalisation timeline compared to lenders who have had more time to prepare. “It’s unreasonable to expect that they would follow the same sequence as those that really and truly, two and a half years ago, when we made this announcement, have had ample time,” Cardoso said, adding that the apex bank remains actively engaged with all relevant parties to ensure an orderly and credible outcome.
Union Bank’s Chief Brand and Marketing Officer, Olufunmilola Aluko, said the governor’s words only reinforce what the bank has long maintained. She described the institution as a going concern with a resilient franchise, stable operations and uninterrupted service across all channels, and gave an unequivocal assurance that customer deposits remain safe and secure.
Aluko added that the bank is working openly and constructively with the CBN toward full compliance under the applicable recapitalisation structure, and pledged to keep stakeholders informed as regulatory engagements progress.
Union Bank is one of three lenders — alongside Keystone Bank and Polaris Bank — whose boards were dissolved by the CBN in January 2024 over a range of infractions including regulatory non-compliance, corporate governance failures and activities deemed a threat to financial stability.
On the broader recapitalisation drive, Cardoso disclosed that 20 banks have already met the new minimum capital thresholds, with another 13 in advanced stages of their capital-raising efforts. The CBN’s March 2024 directive set a N500 billion minimum for internationally licensed banks, N200 billion for national lenders, N50 billion for regional commercial and merchant banks, and between N10 billion and N20 billion for non-interest banks — all with a deadline of March 31, 2026.
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