A Federal High Court in Lagos has struck down the Central Bank of Nigeria’s (CBN) decision to sack the board and management of Union Bank, ruling that the apex bank exceeded its legal powers in the January 2024 takeover.
Justice Chukwujekwu Aneke, who delivered the judgment on Wednesday morning, ordered the immediate reinstatement of the bank’s original board and management and restored the rights of the core shareholders, effectively reversing the CBN’s intervention.
The court also barred the CBN and its appointed board from taking any further actions, including recapitalisation or related corporate decisions, until the matter is fully resolved.
The ruling is seen as a major win for Union Bank’s core shareholders, Titan Trust, Luxis International, and Magna International, who had challenged the CBN’s takeover, arguing that it violated their ownership rights and corporate governance principles.
In January 2024, the CBN had dissolved Union Bank’s board, appointing Yetunde Oni as managing director/CEO and Mannir Ubali Ringim as executive director.
The shareholders responded by filing a court case seeking judicial review of the central bank’s actions, describing the move and the proposed recapitalisation as unlawful and carried out without due process.
With the court nullifying the CBN’s takeover, Union Bank is expected to resume normal operations under its restored board, while the CBN retains the right to appeal the judgment if it chooses.
