Many financial experts are worried as Union Bank of Nigeria (UBN), a historic pillar of the coun-try’s financial sector, is facing
significant challenges amid an unforgiving economic environment and internal leadership turmoil. Established in 1917 and rebranded several times, UBN has a storied past but is struggling to keep pace with
its contemporaries and newer competitors.
From its inception as Colonial Bank to its rebranding as Barclays Bank DCO, and
finally to Union Bank of Nigeria in 1979, UBN has been a cornerstone of Nigeria’s
banking landscape. Despite this legacy, the bank now ranks 10th among Nigeria’s 25
deposit money banks in terms of total assets, holding N3.65 trillion as of December 2023.
In comparison, Access Bank, established in 1989, leads with an impressive N32.57 trillion in assets and operates 737
branches nationwide.
UBN’s performance metrics paint a challenging picture. With a customer base of 7.8 million, UBN lags significantly behind its peers. GTBank, Zenith Bank, and Access Bank each boast customer bases exceeding 30 million. UBN also failed to make the top ten list for customer deposits in 2023,
a critical metric of banking success. Zenith Bank leads in this area with N15.17 trillion in
deposits, followed closely by Access Bank with N15.32 trillion and First Bank of Nigeria with N10.87 trillion. In stark contrast,
UBN’s deposit growth has been relatively stagnant.
The bank’s internal challenges are equally
daunting. In January 2024, the Central Bank of Nigeria (CBN) dismissed UBN’s board of
directors following revelations that linked former CBN governor Godwin Emefiele
to dubious dealings involving Titan Trust Bank, UBN’s parent company. According to the Special Investigator’s report, Emefiele used ill-gotten wealth to set up Titan Trust Bank, which then acquired UBN. This scandal has exacerbated UBN’s instability, raising concerns about its governance and future direction.
The bank’s fragmented ownership structure and recurrent leadership crises have further impeded its progress. Unlike other banks
with clear ownership and governance structures, UBN has been plagued by boardroom squabbles and inconsistent
leadership. This instability has
hampered its ability to compete effectively in the market.
