Banking
Union Bank’s Acquisition: Titan Trust Bank Aims for Market Dominance, Targets Tier 1
By Oluwafemi Adeoye
With the recent acquisition of Union Bank of Nigeria (UBN) Plc by Titan Trust Bank Limited (TTB), a deal that took stakeholders by surprise last year, the latter is now positioned to maintain its lead as a technology-driven tier-1 bank, OLUWAFEMI ADEOYE writes.
When Titan Trust Bank Limited (TTB), one of the three newest entrants into the Nigerian banking industry, began operations in October 2019, many people gave it just a passing glance, but after a few years, the achievements of the lender have taken industry watchers by surprise.
Established on the 12th of December 2018 with a solid post-capitalization financial base in real cash, the bank has proven that it is ready to compete with long-standing and well-rooted Nigerian banks.
In pursuit of an expansionary course with the objective of building a stronger brand capable of taking on a larger market share of a continent striving for financial inclusion, the lender which is on a mission to take advantage of the identified gaps in the banking sector and address the unmet needs of the retail mass market, SMEs and corporates, again took the industry by surprise after it announced its acquisition of 89.4% interest in 104-year-old Union Bank, but later upped the stake to 93.4%, in barely four years of its existence.
Its expansionary drive could not have come at a better time with Tier-1 banks moving to HoldCo structures, FinTech standing as the next big thing, and the African economy desperately in need of strengthened financial systems.
The deal, regarded as one of the largest acquisition deals in the history of Nigeria’s banking industry, with an off-market deal worth N191 billion, was however formalized recently with Tropical General Investments Limited (TGI Group), the parent company of TTB, becoming majority shareholder and core investor in Union Bank.
The acquisition stands as the biggest in recent years, dwarfing the N120 billion Crown Mills paid to acquire Dangote Flour Mills and the N91 billion NIPCO paid for a majority share in Mobil Nigeria, capital market analysts noted. Also, this is the biggest deal in the banking space since the N72 billion merger between Access Bank and Diamond Bank Plc.
This is, however, not the first time that a smaller bank will acquire a bigger one in Nigeria, it is however the first time that an unlisted bank, which is barely four years old, will be acquiring a listed, century-old bank.
It is worthy to note that TGI Group, having been in Nigeria for over 3 decades with an established track record of successfully establishing and profitably running all their subsidiaries, is the perfect investor for Union Bank as they are evidently here for the long run rather than short term investors. This will obviously provide Union Bank with a lot of stability and the established expertise of TGI and the team that they have put together to make Union Bank a bank of the first choice for Nigerians in the very near future. Business analysts have, however, described the deal as a win-win for Nigerians and the Nigerian economy.
The completion of the Titan-Union deal has also seen the exit of the former board and management team of Union Bank and the emergence of Mr Farouk Mohammed Gumel and Mr Mudassir Amray as its board chairman and new Chief Executive Officer (CEO) respectively, effective June 2, 2022. Other board appointments under the new ownership of the bank include Mr Andrew Ojei, Alhaji Abubakar Mohammed, and Mr Lawrence Mackombo – all Non-Executive Directors.
But unknown to many, since the inception of TTB in October 2019, the bank has been on an upward trajectory and has further positioned itself as a challenger bank.
At the start of its operations, the management team led by Mr Mudassir Amray, the current chief executive of Union Bank, and Mrs Adaeze Udensi (current acting managing director of TTB), drew up a holistic and integrated approach to business modernization, which has formed the foundation for the bank’s superior customer-centric experience.
The impact of this strategic decision led to a positive impact on the bank’s performance within its first three months of operations where the bank recorded a profit after tax (PAT) of over N600 million.
In its determination to take financial services to every household in order to drive effective inclusion and participation in the recovery and growth of Nigeria’s economy, TTB invested substantially in technology and developed fully integrated service models that enable its customers to enjoy banking services through a wide range of channels. The bank believes in innovation, creativity, and the use of technology to enhance the lives of its customers while it also strives to ensure that its products and services are meeting the changing needs of its customers.
Recently, TTB launched and deployed the latest version of Oracle’s FCCM module, powering our AML/CFT infrastructure, used in over 120+ sites by top global banks. It has also invested in top-notch infrastructure for AML/KYC, as well as the Oracle Financial Services Analytical Application (OFSAA) to ensure rigorous analysis and measurement of its risk-performance objectives.
In less than three years of operation, TTB has grown to earn the confidence of the banking public, offering quality banking services with cutting-edge technology that enables its customers to enjoy banking services through a wide range of channels.
Therefore, with its recent acquisition of Union Bank, one of Nigeria’s long-standing and most respected financial institutions with a network of over 293 sales and service centres and over 937 ATMs spread across Nigeria, analysts believe the deal may trigger a fresh competition among money deposit banks in the country.
The lender has exhibited a grand ambition to mature to a Tier-1 bank in the next five years and is banking on its vast digital banking, strength to disrupt a space where the big five banks commonly known by their initials as FUGAZ hold sway.
The acquisition eases the path for TTB to become Nigeria’s sixth biggest lender, with Union Bank’s assets climbing in valuation to N2.6 trillion at the end of 2021 and Titan’s standing at N246 billion as of December 2021.
According to Mr Tunde Lemo, chairman of Titan Trust Bank, with the combination of TTB, a tier-3 bank, and UBN, a tier-2 bank, “we are going to see the emergence of a tier-1 bank.”
“Union Bank is one of the largest in terms of network. But we think that after 104 years of operation, it can be rejuvenated by a bank like Titan Trust Bank that has cutting-edge modern banking skills.
“We believe that by combining fintech strength with the brand value of UBN, we can make an impression in Nigeria by deploying modern banking to every nook and cranny of the country.
“The deal represents a unique opportunity to combine Union Bank’s longstanding and leading banking franchise with TTB’s innovation-led model, which promises to enhance the product and service offering for our combined valued customers.
“So, there will be a significant synergy between the two institutions,” he said.
With the new development, the bank is poised for market dominance in the financial services industry, especially in the retail segment.
By Adedapo Adesanya
The Nigeria Deposit Insurance Corporation (NDIC) says it has paid the insured deposits of about 700,000 customers of the defunct Heritage Bank and has commenced the reimbursement of depositors of 46 microfinance banks (MFBs) whose operating licences were recently revoked by the Central Bank of Nigeria (CBN).
The chief executive of NDIC, Mr Oludare Sunday, made this known on Wednesday during a retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos.
He said the corporation immediately began settling the insured deposits of customers after the CBN revoked the licences of the 46 microfinance banks and appointed the NDIC as their provisional liquidator.
“We are working on those. The CBN revoked the licences, and we were appointed as the provisional liquidator. We have started paying depositors of those banks, and gradually we intend to cover all the insured depositors,” he said.
Mr Sunday explained that the NDIC’s responsibility extends beyond paying insured deposits to recovering outstanding loans owed to the failed institutions and disposing of their assets to generate funds for the settlement of uninsured depositors.
“Our function as liquidator involves the payment of guaranteed sums. Thereafter, we go after those who owe the institutions and have not paid. We also ensure that we sell the available assets and realise their investments towards paying the uninsured portion of the deposits. So, we have started paying the guaranteed deposits. What we are doing now is also realising the assets of those institutions,” he stated.
Although he declined to disclose the exact number of depositors of the failed microfinance banks who had been reimbursed, Sunday said the Corporation was working with the Nigerian Interbank Settlement System (NIBSS) to identify depositors through their Bank Verification Numbers (BVN) to ensure seamless payments.
“So, the more accounts we discover, the more payments we make,” he added.
Providing an update on the liquidation of Heritage Bank, the NDIC chief said about 700,000 depositors had already received their insured deposits, while efforts were ongoing to trace other customers whose identities could not be verified from available records.
He attributed the challenge to legacy accounts created before the introduction of the BVN system, as well as incomplete customer records inherited from banks that were later merged into Heritage Bank.
“If you know Heritage Bank, you know it is an amalgamation of several banks, including the acquisition of Enterprise Bank in 2014. So, if you think of banks like Guardian Express and Spring Bank, they are all part of Heritage Bank.
“There are depositors we have not been able to trace, and this is an opportunity for them to come forward. I am sure many of us did the National Youth Service Corps (NYSC) and may have left some money in an account, but there was no BVN then.
“Even the addresses we had were sometimes things like ‘opposite filling station.’ How do you trace such a person? Once they come forward, and for those we have been able to identify from the institution’s database, we have been paying them,” he explained.
Mr Sunday added that the Corporation would continue to recover outstanding loans and dispose of Heritage Bank’s assets to generate funds for the payment of liquidation dividends to depositors whose balances exceeded the insured limit.
Earlier in his remarks, he described the NDIC as a critical pillar of Nigeria’s financial safety net, stressing the need for stronger collaboration between regulators and the National Assembly as the banking sector responds to recapitalisation efforts and rapid financial technology developments.
According to him, while the ongoing banking recapitalisation programme has strengthened the resilience of financial institutions, it must be complemented by sound corporate governance, effective risk management, strict regulatory compliance and robust supervision to safeguard long-term financial system stability.
He also disclosed that more than 98 per cent of depositors, representing over 281 million accounts across insured financial institutions, are fully protected under the NDIC’s deposit insurance scheme.
By Adedapo Adesanya
Zenith Bank Plc is investigating an incident involving unauthorised access to customers’ data, noting that the breach does not involve financial information and has not compromised its banking services or digital channels.
In an email sent to customers on Wednesday, the bank stated that the incident was part of a broader global cyberattack affecting multiple international organisations across various sectors.
The lender stated that it immediately activated its incident response protocols and intensified its cybersecurity and remediation efforts upon discovering the incident.
“This incident is part of a broader, global cyber-attack targeting multiple international organisations across various sectors. Upon discovery, we promptly activated our incident response protocols, cybersecurity actions and remediation efforts,” the bank said.
The bank reassured customers that its banking services and digital channels remain secure and fully operational.
As a precautionary measure, Zenith Bank advised customers to remain alert to potential phishing attempts and other forms of social engineering.
“As a precaution, we encourage our customers to remain vigilant against phishing emails, text messages, or phone calls, and never to disclose their password, PIN, One-Time Password (OTP), or other security credentials to anyone,” the bank said.
The incident is the latest in a series of cybersecurity challenges facing Nigerian financial institutions, with banks in recent months suspending their social media operations over impersonation and other fraudulent activities.
Earlier in April, the Nigeria Data Protection Commission (NDPC) said it was investigating alleged data breaches involving Sterling Bank, Remita and the Corporate Affairs Commission (CAC).
Nigerian banks have long been prime targets for cybercriminals because of the vast amounts of customer data and financial transactions they handle every day.
While many attacks have traditionally sought to steal funds, cybercriminals are increasingly targeting personal information, which can be used for identity theft, phishing schemes, account takeovers and other forms of financial fraud.
Cybersecurity threats have increasingly targeted Nigerian banks in recent years. In 2025, Union Bank of Nigeria warned customers about fraudulent websites and phishing campaigns designed to steal login credentials and personal information by impersonating the bank.
In August 2024, Guaranty Trust Bank experienced a domain-related security incident that temporarily disrupted access to its official website, although the lender assured customers that their deposits and banking services remained secure while it resolved the issue.
By Adedapo Adesanya
The chairman of First HoldCo Plc, Mr Femi Otedola, has affirmed plans to increase his 26 per cent holding in the organisation to 51 per cent, confirming a planned takeover of Nigeria’s oldest banking institution.
Mr Otedola spoke in an exclusive interview with Nairametrics published on Monday, giving a rare direction following recent speculations about the financial institution.
The milestone followed a series of share acquisitions, as Mr Otedola sought to tighten his grip as the company’s largest shareholder following the recent acquisition of additional shares worth N222.21 billion.
In the interview, the mogul said he has invested more than N600 billion of his personal wealth in First HoldCo, describing the move as a “long-term generational commitment” rather than another turnaround investment he would eventually exit.
Responding to speculation that he intends to consolidate his position in the group, Mr Otedola hinted that his investment journey is far from over.
“My investment threshold is always over and above 51 per cent,” he said. “One of my key investment principles is that firm shareholder control, with due regard for minority interest, is a key ingredient to executing reforms and restructuring to deliver value to all stakeholders.”
The businessman said the same strategy had guided his investments in African Petroleum Plc, later renamed Forte Oil Plc, where he gradually increased his shareholding from 28 per cent to 75 per cent before exiting the company in 2019.
He said he also increased his stake in Geregu Power Plc from 51 per cent to 95 per cent before reducing it to 77 per cent after the company’s public listing.
“I am on the same trajectory with First HoldCo Plc,” Mr Otedola said.
“To date, I have invested over N600 billion of my personal wealth in First HoldCo Plc — a figure that speaks not to speculation, but to unflinching confidence in the institution’s future, fundamentals and an unwavering personal commitment to its success.”
Mr Otedola said his decision to invest in First HoldCo came at a time when the institution was facing one of the most challenging periods in its history.
The billionaire steadily increased his investment in the group, accelerating his share purchases in 2026. His stake grew from 6.68 billion shares (15.95 per cent) in June 2025 to 8.06 billion shares by March 2026, then to 9.28 billion shares by June after acquiring about 1.22 billion shares in one quarter. A further purchase through Calvados Global Services last month lifted his holdings above 10 billion shares for the first time.
