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, ordering the immediate restoration of the bank’s former leadership.
Gatekeepers News reports that delivering the judgment, Justice Chukwujekwu Aneke ruled that the apex bank acted beyond its statutory powers when it removed the board in January 2024. The court consequently set aside all actions taken by the CBN-appointed management.
The ruling reinstates Farouk Mohammed Gumel as chairman, alongside the previous board and management team, effectively reversing the regulatory intervention that had placed new leadership in charge of the bank.
The court also restrained the CBN and its appointed representatives from taking further steps regarding the bank’s affairs, including any moves linked to recapitalisation, pending proper legal procedures.
The case was instituted by the bank’s core shareholder, Titan Trust Bank, Luxis International, and Magna International, who argued that the dissolution was carried out without due process and in violation of relevant banking laws.
The dispute dates back to January 2024 when the CBN dissolved the boards of Union Bank and other financial institutions over alleged regulatory breaches and corporate governance concerns.
The latest judgment represents a major legal setback for the apex bank and may have broader implications for regulatory interventions in Nigeria’s banking sector, particularly amid ongoing recapitalisation efforts.
