KEY POINTS
- Justice Chukwujekwu Aneke ruled the CBN acted ultra vires in dissolving Union Bank’s board in January 2024.
- The court ordered immediate reinstatement of the former board led by Farouk Mohammed Gumel.
- CBN says Union Bank remains stable and fully capable of meeting all customer obligations.
A Federal High Court in Lagos has dealt a significant legal blow to the Central Bank of Nigeria, ruling that it exceeded its statutory powers when it dissolved Union Bank’s board and management in January 2024 and ordering the immediate reinstatement of the bank’s former leadership.
Justice Chukwujekwu Aneke delivered the Union Bank CBN court judgment Wednesday, quashing all decisions taken by the CBN-appointed board since its installation and restoring the former board led by Farouk Mohammed Gumel. Furthermore, the court barred the CBN, its appointed directors, and all agents from taking any further steps toward recapitalisation or any related action concerning the bank, a restraint that lands at a critical moment as Nigeria’s banking sector races toward the CBN’s April 2026 minimum capital deadline.
How the case reached court
The Union Bank CBN court dispute began when core shareholders, specifically Titan Trust Bank, Luxis International, and Magna International, challenged the legality of the CBN’s January 2024 intervention. The CBN had dissolved Union Bank’s board at the time and installed Yetunde Oni as Managing Director and Mannir Ubali Ringim as Executive Director.
The shareholders, who collectively invested $190 million in the bank, argued that the move excluded them from management and diluted their shareholding without due process. Justice Aneke agreed, ruling that the CBN’s actions were inconsistent with the Banks and Other Financial Institutions Act 2020 and that the applicants had suffered a continuing injury throughout the period between January 2024 and December 2025.
CBN responds, assures depositors
In a late Wednesday statement, the CBN acknowledged the judgment and said it was obtaining a Certified True Copy to review carefully. Nevertheless, the regulator moved quickly to reassure the public.
Acting Director of Corporate Communications Hakama Sidi Ali confirmed that Union Bank’s status remained unchanged and that the bank continued to meet all obligations to customers, depositors, and stakeholders. The CBN also reaffirmed its commitment to regulatory oversight that keeps the bank operating in a safe and stable manner.
