Union Bank Issues Firm Assurance to Customers Following CBN Recapitalisation Announcements
Union Bank of Nigeria has moved decisively to address public concerns in the wake of recent remarks by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, concerning banks under regulatory oversight and the ongoing recapitalisation exercise. In a formal statement released on Wednesday, February 25, 2026, the financial institution strongly reaffirmed its operational stability and provided clear assurances to customers that their deposits remain fully secure and protected.
CBN Governor Clarifies Distinct Timelines for Banks Under Intervention
Speaking at the conclusion of the Monetary Policy Committee meeting held on February 24, 2026, Governor Cardoso provided detailed clarification regarding the recapitalisation process. He explained that financial institutions currently under regulatory intervention face unique legal and structural circumstances, which justify a different timeline for meeting capital requirements compared to banks that initiated preparations over two years ago when the new rules were first announced.
The CBN governor emphasised that it would be unreasonable to expect these institutions to adhere to the same sequence as others that had ample time to execute their capital-raising strategies. He further noted that the Central Bank remains actively engaged with all stakeholders to ensure orderly and credible outcomes while steadfastly safeguarding the stability of the financial system.
Union Bank Emphasises Transparency and Commitment to Compliance
In response to these developments, Union Bank's Chief Brand and Marketing Officer, Olufunmilola Aluko, reiterated that the bank is under strong supervisory engagement but continues to deliver uninterrupted services across all its channels. She described the institution as a "going concern" with a resilient franchise and stable operations, affirming that the bank has consistently maintained that customer deposits are safe and secure, a position that remains unchanged.
Aluko further highlighted that Union Bank is working transparently with regulators toward full compliance under the recapitalisation framework. She stressed that regulatory engagement plays a vital role in preserving financial system stability and assured stakeholders that updates would be provided as discussions progress.
Background on Regulatory Actions and Capital Targets
In January 2024, the Central Bank of Nigeria dissolved the boards of Union Bank and two other lenders due to issues ranging from regulatory non-compliance and corporate governance lapses to actions deemed capable of threatening financial stability. Concurrently, the apex bank disclosed that 20 banks have fully met the new minimum capital requirements, while 13 others are at advanced stages of their capital-raising processes.
Under the revised framework announced in March 2024, banks with international licences are required to raise their minimum paid-up capital to N500 billion. National banks must meet a N200 billion threshold before the March 31, 2026, deadline. Regional commercial and merchant banks are expected to hold at least N50 billion, while non-interest banks must maintain N20 billion for national licences and N10 billion for regional operations.
Approaching Deadline and Market Implications
As the March 31, 2026, recapitalisation deadline set by the Central Bank of Nigeria draws closer, uncertainty hangs over 13 banks still working to meet the new minimum capital thresholds. At the close of the latest Monetary Policy Committee meeting, CBN Governor Olayemi Cardoso disclosed that 20 banks have fully satisfied the revised capital requirements. Another 13 lenders are at advanced stages of compliance, raising hopes that widespread disruption may yet be avoided.
Union Bank's statement appears strategically aimed at reinforcing confidence among customers and investors, underscoring its commitment to regulatory compliance, operational continuity, and the robust protection of depositors' funds. The bank's leadership continues to engage constructively with regulators to navigate the recapitalisation process smoothly and maintain trust in the financial sector.
