A Federal High Court in Lagos has nullified the decision of the Central Bank of Nigeria (CBN) to dissolve the board and management of Union Bank of Nigeria, ruling that the action was taken outside the regulator’s statutory powers.
Delivering judgment on Wednesday, Chukwujekwu Aneke set aside all decisions taken by the CBN-appointed board and directed that the bank’s former board and management be restored without delay.
The court also restrained the apex bank and its appointed representatives from taking further steps regarding the bank’s affairs, particularly any proposed recapitalisation, pending compliance with due process.
The legal dispute arose from the CBN’s decision in January 2024 to remove the bank’s leadership and appoint a new management team, including Yetunde Oni as managing director.
However, the intervention was swiftly challenged by the bank’s core shareholders, including Titan Trust Bank and other stakeholders, who filed a suit seeking judicial redress.
The shareholders argued that the regulator’s actions violated established legal procedures and described the move as an unlawful attempt to restructure the bank’s ownership and governance framework.
In an earlier ruling delivered in December 2025, the court had granted interim relief restraining the CBN from taking additional actions regarding the bank’s leadership and governance.
Wednesday’s final judgment effectively settles the dispute in favour of the shareholders, affirming that the central bank exceeded its legal authority in dissolving the board.
The ruling is widely viewed as a significant legal pronouncement on the limits of regulatory intervention within Nigeria’s banking sector.
Analysts say the decision could shape future interactions between financial institutions and the Central Bank of Nigeria, particularly regarding governance oversight and regulatory powers.
