The latest scandal raises serious questions about the bank’s ability to safeguard customer funds
Massive N9.3 Billion Fraud Rocks Union Bank After System Failure
A colossal N9.3 billion fraud has plunged Union Bank of Nigeria Plc into crisis, exposing vulnerabilities in its digital infrastructure and rattling the nation’s banking sector.
According to reports, the breach, detected on March 23, 2025, involved unauthorized transfers from customer accounts, with funds siphoned to 53 financial institutions across Nigeria.
Under Managing Director Yetunde Oni, Union Bank is grappling with the fallout just 15 months after the Central Bank of Nigeria (CBN) overhauled its leadership due to governance lapses. The latest scandal raises serious questions about the bank’s ability to safeguard customer funds.
Court documents filed at the Federal High Court in Lagos (FHC/L/CS/629/2025) reveal that Union Bank is seeking to freeze accounts linked to the fraud in a bid to recover the stolen N9.3 billion. Oluwasegun Falola, head of the bank’s E-Fraud Investigations Department, stated that a glitch in the core banking system was exploited, allowing perpetrators to funnel funds through multiple accounts.
“The breach stemmed from a system failure, which fraudsters deliberately targeted,” Falola said in an affidavit, noting the rapid dispersal of funds to obscure their trail.
During an April 2, 2025, court hearing, Union Bank’s counsel, A. Adedoyin-Adeniyi, reported that the funds were still being transferred, suggesting an active money-laundering operation. “The movement of funds continues, with more individuals implicated,” Adedoyin-Adeniyi told the court.
Justice Deinde Dipeolu responded swiftly, issuing an order to freeze the suspect accounts, a move aimed at curbing further losses.
The incident has sparked widespread concern about the security of Nigeria’s banking systems, with experts pointing to outdated technology and weak internal controls as key vulnerabilities. Analysts are calling for enhanced fraud detection systems and stricter regulatory measures to prevent future breaches.
For Union Bank, the scandal threatens not only its financial stability but also its reputation, as it battles to restore confidence among customers and stakeholders in the wake of one of Nigeria’s largest banking frauds. Read More
