Court voids CBN’s dissolution of Union Bank board, orders immediate reinstatement

The Federal High Court sitting in Lagos has nullified the decision by the Central Bank of Nigeria (CBN) to dissolve the board and management of Union Bank of Nigeria, describing the action as unlawful and beyond the apex bank’s statutory powers.

Delivering judgment on Wednesday, Justice Chukwujekwu Aneke set aside the January 2024 directive by the CBN which removed the bank’s leadership, following a legal challenge instituted by the bank’s core shareholders — Titan Trust, Luxis International, and Magna International.

In what is being described as a landmark ruling, the court held that the CBN exceeded its legal authority in dissolving the bank’s board and management.

Justice Aneke consequently quashed all decisions taken by the CBN-appointed interim leadership and ordered the immediate restoration of the former board and management of Union Bank.

The court further restrained the apex bank, its appointed officials, and agents from taking any additional steps regarding the bank’s recapitalisation or any related actions pending compliance with due process.

The controversy dates back to January 2024 when the CBN dissolved the boards and management of three banks — Union Bank, Keystone Bank, and Polaris Bank — citing alleged infractions and regulatory breaches.

At the time, the CBN, through its Acting Director of Corporate Communications, Sidi Ali Hakama, justified the move, stating that it was necessitated by violations of provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.

According to the apex bank, the affected institutions were involved in regulatory non-compliance, corporate governance failures, and activities deemed capable of threatening financial system stability.

Following the dissolution, the CBN appointed a new leadership for Union Bank, including Yetunde B. Oni as Managing Director/Chief Executive Officer and Mannir Ubali Ringim as Executive Director.

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Dissatisfied with the intervention, the bank’s core shareholders approached the Federal High Court, filing an ex parte motion seeking a judicial review of the CBN’s action.

They argued that the removal of the bank’s directors and the steps taken towards recapitalisation by the interim board were carried out without due process and in violation of applicable laws.

The plaintiffs also sought an order restraining the CBN and its appointees from taking further actions affecting the bank pending the determination of the substantive suit.

On December 5, 2025, the court granted an interim order in favour of the shareholders, paving the way for the final judgment now delivered.

The defendants in the suit included the CBN Governor, the CBN, Union Bank, and several individuals associated with the interim board and regulatory actions, among them Yetunde Oni, Mannir Ringim, Oluyinka Abimbola Morgan, Ibrahim Musa Oruma, and others.

The judgment is expected to have far-reaching implications for regulatory oversight within Nigeria’s banking sector, particularly concerning the extent of the CBN’s intervention powers in commercial banks.

Legal and financial analysts say the ruling may redefine the balance between regulatory authority and corporate governance rights of shareholders, while also raising questions about future enforcement of banking regulations in the country.