Bank

Bank lending to Nigeria’s agricultural sector increased to 5.33% of total credit as of May 2025, marking a rebound after years of decline, according to the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).

The sector’s share of total lending had dropped from 6.18% in 2022 to 4.82% in 2024, amid slower growth and growing caution from banks. NIRSAL attributes the recent rise to renewed confidence and stronger risk management measures in agricultural financing.

The institution revealed that it facilitated over N70 billion in commercial financing for agribusinesses in Q3 2025, its best performance since inception in 2013. This brings its total mobilized financing to about N270 billion, highlighting an uptick in activity among commercial banks.

Renewed Interest from Banks

The renewed interest is largely driven by NIRSAL’s risk-sharing frameworks and technical support, which reduce default risk and improve loan quality. Two newly licensed banks have joined the agricultural finance space this year, leveraging NIRSAL’s tools to structure and manage credit portfolios.

“N70 billion may appear modest compared to the overall financing gap, but it proves that agriculture can be commercially and sustainably financed,” said Sa’ad Hamidu, Managing Director of NIRSAL.

Despite the progress, challenges persist. The sector’s contribution to GDP growth remains sluggish, and lending volumes are still below what’s required for large-scale transformation.

Building Capacity in Agricultural Finance

NIRSAL said that over 1,100 bank employees have been trained in agricultural finance in 2025, alongside additional sessions for value chain participants in areas like feedlot management, commodity exports, and climate finance.

The agency is also developing the NIRSAL LandBank Portal, a digital platform designed to connect stakeholders and provide data-driven insights for investors. In partnership with the Rural Electrification Agency, NIRSAL aims to boost off-grid energy access for rural production clusters — a move expected to enhance productivity and resilience.

With a target of N150 billion in total financing by year-end, NIRSAL hopes to further integrate agribusiness into Nigeria’s mainstream financial system.

What You Should Know

Last year, the House of Representatives urged the Central Bank of Nigeria (CBN) to allocate an additional $3 billion to NIRSAL to close the agricultural funding gap.

Hon. Uchenna Okonkwo emphasized that insufficient agricultural investment has worsened food insecurity, poverty, and economic stagnation. The recent increase in lending, he said, is a step forward — but sustained growth will depend on whether banks continue to view agriculture as a profitable commercial opportunity rather than a developmental obligation.

This article follows up on Titan Trust and Union Bank: A Deal, A Reversal, and the Regulator. Inside Business, a partner resource, provides this detailed reply and perspective. (Note: sensitive documents such as agreements and audited accounts have been excluded).

From Atlas Mara to Titan Trust: How the Trouble Began

Union Bank of Nigeria’s journey took a sharp turn after Atlas Mara—the African investment firm co-founded by Bob Diamond—sold its controlling stake to Titan Trust Bank (TTB) in 2022.

• Atlas Mara first entered Union Bank in 2014, buying 20.9% from AMCON.

• By 2018, it had raised its stake to 49%.

• In December 2021, Atlas Mara and other major shareholders (including Union Global Partners) sold a combined 93.41% stake to Titan Trust Bank.

The deal, completed in June 2022, made Tropical General Investments (TGI) Ltd, linked to Dubai-based Vink Corporation and Cornelius G. Vink, the ultimate majority shareholder of TTB.

By November 2022, Titan Trust executed a Mandatory Takeover Offer for all remaining shares. In May 2023, a scheme of arrangement forced out minority shareholders, paving the way for Union Bank’s delisting from the Nigerian Stock Exchange in November 2023.

The CBN Investigation and Ownership Questions

The Union Bank takeover coincided with President Bola Tinubu’s appointment of Jim Obazee in July 2023 as Special Investigator into alleged corruption at the CBN and related agencies.

Obazee soon raised doubts about:

1. Titan Trust Bank’s capacity to finance the Union Bank acquisition.

2. The true owners and source of funding behind the deal.

Unable to verify the funding trail—particularly the alleged $190m equity by Cornelius Vink and Rahul Savara—Obazee recommended that government seize control.

By January 2024, President Tinubu approved the takeover. The CBN became the sole owner of Union Bank.

Lemo, Vink, and Savara: Missing in Action

• Tunde Lemo, TTB’s chairman, forfeited his own stake and proposed that government take over Vink and Savara’s holdings after they repeatedly failed to appear before investigators.

• Cornelius Vink and Rahul Savara, both based in Dubai, ignored multiple invitations, citing medical and family reasons through their lawyers.

• Despite promises via legal counsel (G. Elias Chambers), neither man has appeared before investigators since August 2023.

Interestingly, none of the parties has gone to court to challenge the federal takeover. Even Afreximbank, which reportedly provided a $300m facility for the acquisition, has stayed silent.

New Management, Old Questions

In January 2024, the federal government dissolved Union Bank’s board and appointed an interim management team led by:

• Yetunde Oni (Managing Director)

• Mannir U. Ringim (Executive Director)

Later, the CBN reconstituted a new board with:

• Bayo Adeleke (Chairman)

• Four independent non-executive directors: Oluyinka Abimbola Morgan, Chiamaka Ezenwa, Mohammed Balarabe, and Eileen C. Shaiyen

• Two new executive directors: Taiwo Shote and Kelechi Nwaoba

• Ringim retained from the interim team

But this raised another concern: Whose interests do these new appointees represent? Are they proxies for Vink, Savara, and Lemo—or truly government choices?

The Big Question: Who Will Recapitalise Union Bank?

The CBN has directed all banks to raise fresh capital by March 2026. With Union Bank now fully under government control, Nigerians are asking:

• Will the new appointees recapitalise the bank?

• Or will the federal government itself step in as the ultimate backer?

For now, the ownership and future of one of Nigeria’s oldest banks remain uncertain, political, and deeply entangled in controversy.

The story of Union Bank is no longer just about banking—it’s about power, politics, and accountability in Nigeria’s financial system.