A Federal High Court in Lagos has nullified the January 2024 decision by the Central Bank of Nigeria (CBN) to dissolve the board and management of Union Bank of Nigeria, declaring the move unlawful and beyond its powers.
In a landmark ruling delivered on Wednesday, Justice Chukwujekwu Aneke held that the CBN’s action was ultra vires, effectively invalidating all decisions taken by the regulator-appointed leadership.
Court Orders Immediate Reinstatement
The court directed the immediate restoration of the bank’s former board and management, overturning the appointments made by the CBN following the dissolution.
It also issued an order restraining the apex bank, its agents, and appointees from taking any further actions concerning the bank, including moves related to recapitalisation.
Background to the Dispute
The CBN had in January 2024 dissolved Union Bank’s leadership and appointed:
- Yetunde Oni as Managing Director/CEO
- Mannir Ubali Ringim as Executive Director
The decision was challenged by the bank’s core shareholders — Titan Trust Bank, Luxis International, and Magna International — who argued that the regulator acted without due process.
They also opposed steps taken by the interim board, including proposed recapitalisation plans, describing them as illegal and procedurally flawed.
Earlier Reliefs and Final Judgment
The court had previously granted interim reliefs in December 2025, restraining further actions pending the determination of the case.
With Wednesday’s judgment, all measures implemented under the CBN-appointed board have now been set aside, marking a significant legal setback for the regulator.
Implications for Nigeria’s Banking Sector
The ruling is expected to trigger a major governance reset at Union Bank and could have wider implications for regulatory oversight in Nigeria’s banking industry.
Legal analysts say the decision underscores the importance of strict adherence to due process, even in cases involving financial system stability.
The development sets the stage for potential further legal and regulatory actions, as stakeholders assess the next steps following the court’s verdict.
