System Breach Shakes Union Bank: N9.3 Billion Vanishes in Massive Fraud Scandal

In a stunning revelation that has sent shockwaves through Nigeria’s financial sector, Union Bank of Nigeria Plc, under the leadership of Managing Director Yetunde Oni, is embroiled in a staggering N9.3 billion fraud case triggered by a catastrophic operational system breach.

The financial heist—uncovered on March 23, 2025—saw unauthorized transfers from customers’ accounts amounting to N9,329,322,870.00. The funds were systematically moved across multiple accounts in 53 different financial institutions, raising fresh alarms over the resilience of the country’s banking systems.

This comes just a year and three months after the Central Bank of Nigeria (CBN) took drastic action by dissolving Union Bank’s board and executive leadership due to governance failures. A new management team was appointed to steer the bank into a more secure and compliant future. But now, that future appears precariously uncertain.

Union Bank, in a suit marked FHC/L/CS/629/2025 before the Federal High Court in Lagos, is seeking a preservative order to freeze the accounts of all suspected recipients. The bank hopes to recover the massive sum siphoned from unsuspecting customers.

In an affidavit filed by Oluwasegun Falola, the head of Union Bank’s E-Fraud Investigations Department, the bank traced the illegal transfers to a breach in its core banking infrastructure. Falola revealed that the bank’s fraud desk uncovered that the funds were discreetly funneled into various accounts and rapidly re-routed to other beneficiaries.

“The fraud occurred as a result of an operational system glitch and deliberate exploitation,” Falola explained, highlighting how quickly the perpetrators dispersed the funds in an attempt to cover their tracks.

When the case was presented in court on April 2, 2025, Union Bank’s counsel, A. Adedoyin-Adeniyi, confirmed that the funds were still being moved—implying an ongoing laundering effort.

N9.3 billion has been moved from the account, and they are still moving funds. We now have more people involved in moving the funds,” Adedoyin-Adeniyi told the court.

Justice Deinde Dipeolu promptly granted the bank’s motion to freeze the implicated accounts, signaling the judiciary’s urgency in supporting financial institutions under threat.

This incident has amplified industry-wide concerns about the integrity of digital banking systems in Nigeria. Experts warn that many financial institutions are using outdated infrastructure, leaving them vulnerable to sophisticated attacks and internal failures.

Financial analysts say the breach underscores a critical need for stronger internal controls, real-time fraud monitoring, and more aggressive regulatory oversight.

For Union Bank, the road to recovery will be steep—not just in recovering stolen funds, but in restoring public trust shaken by one of the largest fraud scandals in recent Nigerian banking history.