A federal high court in Lagos, on Wednesday, March 25, nullified the decision of the Central Bank of Nigeria (CBN) to dissolve the board and management of Union Bank of Nigeria.
The court ruled that the action was taken outside its statutory powers.
Delivering judgment, Justice Chukwujekwu Aneke nullified the CBN’s action following a suit filed by the bank’s core shareholders, Titan Trust, Luxis International, and Magna International.
The CBN had, in 2024, officially dissolved the boards and management of three prominent banks, Union Bank, Keystone Bank, and Polaris Bank linking the move to alleged non-compliance with critical regulatory provisions.
In its landmark judgment, the court held that the apex bank acted beyond its powers when it sacked the board and management of Union Bank of Nigeria in January 2024.
Aneke quashed all decisions and steps taken by the CBN-appointed board and ordered that the former board and management be restored.
The court also restrained the CBN, its appointed board, and their agents from taking any steps towards recapitalisation or any related actions.
The CBN had cited several concerns leading to its decision, including regulatory non-compliance, failures in corporate governance, and involvement in activities threatening financial stability.
Sidi Ali Hakama, acting director of corporate communications at the CBN at the time, said, “This action became necessary due to the non-compliance of these banks and their respective boards with the provisions of Section 12(c), (f), (g), and (h) of the Banks and Other Financial Institutions Act, 2020.
“The banks’ infractions range from regulatory non-compliance and corporate governance failures to disregarding the conditions under which their licences were granted, as well as involvement in activities that pose a threat to financial stability, among others.”
The apex bank subsequently appointed Yetunde Oni as Chief Executive Officer (CEO) and Mannir Ubali Ringim as Executive Director (ED).
However, the affected bank’s core shareholders filed an ex parte motion at the federal high court in Lagos, seeking a judicial review of the CBN’s actions.
They urged the court to declare that the decision by the CBN to replace the existing directors of Union Bank, as well as the proposed unlawful recapitalisation of the bank by the interim board, was carried out without due process.
They also asked the court to bar the CBN, Union Bank, and the directors from taking any further action in respect of the proposed unlawful recapitalisation pending the determination of the judicial review application.
On December 5, 2025, the court granted the ex parte order and has now delivered its final judgment.
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