In a landmark ruling, a Federal High Court in Lagos has nullified the takeover of Union Bank of Nigeria by the Central Bank of Nigeria (CBN), declaring that the apex bank acted beyond its statutory powers.
Delivering judgment on Wednesday, Justice Chukwujekwu Aneke quashed all decisions taken by the CBN-appointed board and management, ordering the immediate restoration of the bank’s former leadership.
The court also restrained the CBN, its appointed board, and their agents from taking any further steps regarding the bank’s recapitalisation or related actions.
The crisis began in January 2024 when the CBN dissolved the board and management of Union Bank, appointing a new leadership team, including Yetunde Oni as Managing Director/Chief Executive Officer and Mannir Ringim as Executive Director.
However, the bank’s core investors — Titan Trust Bank, Luxis International, and Magna International — challenged the move in court, arguing that the apex bank failed to follow due process.
The shareholders filed an ex-parte motion seeking judicial review of the CBN’s actions, including the replacement of directors and a proposed recapitalisation exercise, which they described as unlawful.
In its ruling, the court upheld the claims of the shareholders, declaring the actions of the CBN invalid and lacking legal backing.
It further barred the apex bank and its representatives from continuing any steps linked to the restructuring or recapitalisation of the financial institution.
The judgment follows an earlier interim order granted on December 5, 2025, which had already restrained the parties from taking further action pending the final determination of the case.
The defendants in the case include the CBN Governor, the Central Bank of Nigeria, and several individuals associated with the interim management, alongside Union Bank itself.
The ruling is expected to have far-reaching implications for regulatory oversight in Nigeria’s banking sector, particularly regarding the limits of the CBN’s intervention powers in commercial banks.
Industry analysts say the judgment reinforces the need for strict adherence to due process and corporate governance standards in financial sector regulation.