A major legal setback has hit the Central Bank of Nigeria after the Federal High Court Lagos on Wednesday nullified its January 2024 dissolution of the board and management of Union Bank of Nigeria, declaring the move ultra vires.
In a decisive ruling, Justice Chukwujekwu Aneke quashed all decisions taken by the CBN-appointed board and ordered the immediate restoration of the bank’s former board and management.
The court also issued a restraining order barring the CBN, its appointees, and agents from taking any further steps concerning the bank, including actions tied to the proposed recapitalisation or any related measures.
The apex bank had, in January 2024, dissolved Union Bank’s leadership and appointed Yetunde Oni as Managing Director/Chief Executive Officer, alongside Mannir Ubali Ringim as Executive Director.
However, the decision was strongly contested by the bank’s core shareholders Titan Trust Bank, Luxis International, and Magna International—who approached the court to challenge its legality.
In their suit, the shareholders argued that the removal of the bank’s directors and the steps toward recapitalisation under the interim board were carried out without due process, describing the actions as unlawful. They further urged the court to restrain the CBN, Union Bank, and the appointed directors from taking additional steps pending the determination of the case.
Earlier, on December 5, 2025, the court granted interim reliefs in favour of the applicants before proceeding to hear the substantive suit.
The case listed several defendants, including the CBN Governor, the apex bank, and multiple individuals linked to the interim board and management.
With Wednesday’s judgment, the court has effectively invalidated all actions taken by the CBN regarding the bank’s leadership overhaul, setting the stage for a significant shake-up in Union Bank’s governance and raising fresh questions about regulatory authority and due process in Nigeria’s banking sector.
ELIJAH ADEYEMI
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