A Federal High Court in Lagos ruled on Wednesday that the Central Bank of Nigeria exceeded its powers when it dissolved the board and management of Union Bank of Nigeria Plc in January 2024.
Justice Chukwujekwu Aneke declared the CBN’s intervention ultra vires, quashed all decisions and actions taken by the regulator-appointed interim board, and ordered the immediate restoration of the previous board led by Farouk Mohammed Gumel and the bank’s original management team.
The court further restrained the CBN, its appointed directors and their agents from taking any further steps toward the bank’s recapitalization or related matters.
The ruling stems from a judicial review suit filed by Union Bank’s core shareholders — Titan Trust, Luxis International and Magna International — who argued that the CBN replaced the directors and pursued what they called an unlawful recapitalization without due process. The shareholders secured an interim order halting further recapitalization moves in December 2025.
In January 2024, the CBN had cited regulatory non-compliance, corporate governance lapses and risks to financial stability under the Banks and Other Financial Institutions Act when it dissolved the board and appointed Yetunde Oni as managing director and Mannir Ubali Ringim as executive director.
Defendants in the suit included the CBN governor, the central bank itself and several interim board members. Olasupo Shasore, SAN, of ALP NG & Co represented the core shareholders, while Adeyemi Candide-Johnson appeared for the CBN, Muiz Banire, SAN, for the directors and Koyin Ajayi, SAN, for the bank.
The CBN said it is obtaining a certified true copy of the judgment for review and reaffirmed its commitment to the rule of law. In a statement, the regulator insisted Union Bank’s status remains unchanged, that the lender continues to meet its obligations to depositors and customers, and that it will maintain regulatory oversight to ensure the bank operates safely and soundly.
The decision throws into question the scope of the CBN’s intervention powers under current banking law and could influence how regulators approach similar actions in Nigeria’s financial sector.
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