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CBN Exposes Alarming Financial Misconduct at Union Bank

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Union Bank misconduct allegations surface as CBN intervenes to stabilise the bank amid claims of hidden losses and financial irregularities

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Allegations of Union Bank misconduct involving former directors and owners of Union Bank of Nigeria have emerged following reports of extensive financial irregularities, including the manipulation of records, concealment of losses and the alleged diversion of funds, according to accounts linked to investigative findings made public on Monday.

Also read: Cardoso: Nigeria’s Economy Gains Resilience Through CBN Reforms

The former leadership is alleged to have overseen a period marked by what observers describe as deliberate and systemic exploitation of the institution.

Investigators reportedly uncovered claims that over ₦250 billion in losses were concealed, while a $300 million foreign loan was added to the bank without sufficient safeguards, placing additional strain on its balance sheet.

Further allegations suggest that depositors’ funds were treated in a manner inconsistent with established financial governance standards.

It is claimed that the bank’s own resources were used to acquire its shares, a practice widely regarded as a serious breach of trust and fiduciary responsibility within the banking sector.

The Union Bank misconduct narrative also includes assertions that more than $100 million was improperly withdrawn, leaving the institution exposed to financial instability.

In addition, loans intended for customers were allegedly redirected into questionable transactions, while misleading reports were submitted to lenders, raising concerns about transparency and accountability.

By 2025, the cumulative effect of these reported actions is said to have resulted in nearly ₦400 billion in losses and over ₦147 billion in unpaid charges.

The scale of the alleged financial exposure placed the bank under significant pressure, with implications that extended beyond its immediate operations.

In response to the situation, the Central Bank of Nigeria intervened to stabilise Union Bank of Nigeria and prevent a potential collapse that could have affected the wider financial system.

The regulatory action is viewed as a critical step that helped contain systemic risk and restore confidence among stakeholders.

Following the intervention, the bank has begun a stabilisation process, focusing on recovery and restructuring efforts.

However, the allegations tied to its past leadership continue to shape discussions around governance, regulatory oversight and the importance of ethical conduct in Nigeria’s banking industry.

Also read: FCMB Achieves N288.96bn Capital Base Ahead of CBN International Banking Deadline

The developments have reinforced calls for stronger accountability mechanisms within financial institutions, as well as sustained vigilance from regulators to safeguard the integrity of the sector and protect depositor interests.

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WEMA BANK SETS NOVEMBER 6 FOR HACKAHOLICS 7.0 GRAND FINALE, UNVEILS “FESTIVAL OF THE FUTURE” AS THEME

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Wema Bank, Nigeria’s oldest indigenous bank, most innovative and pioneer of Africa’s first fully digital bank, ALAT, has announced November 6, 2026, as the date for the grand finale of Hackaholics 7.0, its flagship innovation platform.

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Themed “Festival of the Future.” The grand finale will bring together innovators, technology leaders, startup founders, investors and other key players in Nigeria’s innovation ecosystem for an immersive celebration of ideas, technology and the possibilities shaping the future.

Beyond the much anticipated announcement of this year’s Hackaholics Finalists, the event will feature innovation showcases, interactive experiences and conversations exploring how emerging technologies are transforming the way people live, work, build and create.

Designed to go beyond the traditional innovation competition, the Festival of the Future will provide a platform for participants and attendees to experience emerging technologies, discover innovative solutions, connect with industry players and engage in conversations about the opportunities and challenges of a rapidly evolving world. The event will also recognise and celebrate outstanding innovators whose ideas have demonstrated the potential to address real-world challenges and create meaningful impact.

Speaking on the significance of the grand finale and the inspiration behind the Festival of the Future, Wema Bank’s MD/CEO, Moruf Oseni, explained that the concept builds on the Bank’s commitment to creating a future of possibilities while encouraging Nigerians to take a more active role in shaping that future.

“The world is changing at an unprecedented pace. Artificial intelligence and emerging technologies are transforming industries, businesses and everyday life, creating opportunities that would have been difficult to imagine just a few years ago. The question is no longer simply what the future holds, but how prepared we are to shape it.

“This thinking inspired the Festival of the Future. We want to create an experience that brings innovation closer to people, encourages meaningful conversations and challenges us to think differently about how we will live, work, build and create in the years ahead,” he said.

Reaffirming Wema Bank’s commitment to supporting innovation and empowering young Nigerians, Oseni noted that Hackaholics has continued to evolve beyond a competition into a platform for discovering talent, nurturing ideas and connecting innovators with opportunities.

“Since we launched Hackaholics, our goal has remained consistent; to provide young Nigerians with the platform, resources, opportunities and support they need to transform their ideas into practical solutions. We believe that the future of innovation in Nigeria must be driven by the talent, creativity and potential of our people.

“With Hackaholics 7.0, we are taking that commitment further. Beyond recognising outstanding ideas, we want to bring together the people, conversations and experiences that can inspire the next generation of solutions. Our ambition is to continue building an ecosystem where innovation thrives, possibilities are unlocked and Nigeria is better positioned for the future,” he added.

Launched on July 1, 2026, under the theme “Powering Possibilities,”Hackaholics 7.0 commenced with a nationwide pitch centre tour designed to discover and support innovative ideas from young Nigerians across different regions of the country.

The four-month tour attracted 5,329 participants and 1,632 innovative ideas and solutions, with pitch centres hosted across seven locations: Uyo, Kano, Yabatech, Benin, Ibadan, Enugu and Lagos.

Through three distinct tracks; the Ideathon, Hackathon and Social Impact, the initiative provided opportunities for students, graduates, technology enthusiasts, developers and social innovators to present solutions addressing challenges across different sectors. The Ideathon focused on promising ideas, the Hackathon provided a platform for technology developers and builders, while the Social Impact track recognised solutions designed to deliver measurable value to society.

At the conclusion of the nationwide tour, 59 participants emerged from the various pitch centres, reflecting the diversity of ideas, talent and innovation discovered throughout the programme.

As Hackaholics 7.0 progresses towards its final stage, the 59 finalists will be further shortlisted to 20, who will present refined versions of their solutions at the Pre-Pitch scheduled for November 4, 2026.

On November 5, the participants will embark on an Ecosystem Tour powered by Wema Bank, providing an opportunity to visit other top institutions within the technology and innovation ecosystem, interact with industry professionals and gain practical insights ahead of the grand finale.

The journey will culminate on November 6 at the Festival of the Future, where the top innovators will be recognised and celebrated.

Through Hackaholics, Wema Bank continues to demonstrate its commitment to driving innovation, supporting entrepreneurship and creating opportunities for young Nigerians to contribute meaningfully to economic development.

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Theparkpay Technologies Limited Strengthens Global Payments Infrastructure with UK FCA Licence

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Theparkpay UK FCA licence strengthens the fintech’s global payments infrastructure as it expands regulated cross-border services across key markets (more…)

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NDIC Commences Payment to Customers of 46 Failed Microfinance Banks

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NDIC payments to depositors begin as customers of 46 failed microfinance banks receive insured refunds of up to N2 million (more…)

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