The Economic and Financial Crime Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU) have commenced an investigation into how Titan Trust Bank founded in December 2018 raised $300 million to complete its Union Bank acquisition.
Sources quoted by SaharaReporters claimed EFCC, NFIU, the Department of State Services (DSS), the Independent Corrupt Practices Commission (ICPC) and other related commissions have commenced investigation into the deal.
“EFCC, DSS and NFIU are currently investigating Oramah over the loan given to Titan bank. Why the loan to Emefiele and others political exposed person? Though we believe nothing will happen to him because of his closeness to Mamman Daura. He just bought a house for Mamman Daura at George street, off Edgware road in London,” a senior intelligence officer stated.
Investors King had earlier reported that Titan Trust Bank will acquire an 89.4 percent equity stake of the bank from existing major investors, Atlas Mara and Union Global Partners Limited. Titan Trust Chairman, Tunde Lemo later disclosed that the bank has increased its stake to 93.4 percent.
Union bank was established in Nigeria in 1917 as the local unit of British-owned Barclays Bank. This acquisition of a 104 years old bank by a bank established in 2018 came as a shocker to many people in the industry.
Banking on its vast strength of digital banking, Titan Trust Bank later disclosed a grand ambition to mature into a Tier 1 bank in the next five years. If successful, Titan Bank would have disrupted a competitive circle of the five biggest banks (FUGAZ).
AfreximBank, otherwise known as Africa Import-Export Bank is significantly owned by African governments and their public institutions.
Various sources have linked the ownership of Titan Bank to the CBN governor. This has made the controversial bank and its acquisition of Union Bank a deal of interest.
Besides, the bank which was established on the 12th of December, 2018 and started full operation as a commercial national bank on the 26th of April, 2019 could not have the financial and operational muscle to acquire Union Bank if there were no vested interests.
In 2019, Titan Bank recorded a profit of N644 million, and in 2020, its after-tax profit rose to N2.9 billion.
However, the 2021 audited financial statement of the bank showed it now worth over 3 trillion with only two active offices in Lagos. A development that many players in the banking industry have questioned.
