Union Bank of Nigeria Plc, is reportedly embroiled in a massive financial scandal involving the alleged theft of ₦9.3 billion from customer accounts due to a breach in its core banking system.
The incident, which occurred on March 23, 2025, has been described in court filings as “a massive operational failure,” resulting in unauthorized transfers to accounts across 53 different financial institutions.
The bank has filed a lawsuit before the Federal High Court in Lagos (FHC/L/CS/629/2025), requesting urgent orders to freeze and recover the funds. It is also asking the court to compel the involved banks to implement Post No Debit (PND) restrictions on the recipient accounts and return any remaining stolen funds.
Oluwasegun Falola, the Head of Union Bank’s E-Fraud Investigations Department, detailed in an affidavit how the ₦9.3 billion was debited from customer accounts and transferred in small sums to various accounts.
The fraud investigation revealed that the funds were then moved from these accounts to others, further complicating recovery efforts.
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Despite ongoing efforts to trace the funds, the bank’s counsel, A. Adedoyin-Adeniyi, informed the court on April 2, 2025, that the stolen funds were still being moved.
Justice Deinde Dipeolu granted Union Bank’s request to freeze the affected accounts after reviewing the bank’s ex parte motion.
This latest fraud case follows the Central Bank of Nigeria’s dissolution of Union Bank’s previous board over governance issues, raising concerns about the effectiveness of Nigeria’s banking security measures and oversight mechanisms.
As of the time of filing this report, Union Bank has yet to issue an official statement on the breach.
