Federal High Court Nullifies CBN's Dissolution of Union Bank Board, Orders Immediate Reinstatement
A Federal High Court sitting in Lagos has delivered a landmark judgment, ruling that the Central Bank of Nigeria acted beyond its statutory powers when it dissolved the board and management of Union Bank of Nigeria in January 2024. The court, presided over by Justice Chukwujekwu Aneke, set aside all actions taken by the CBN-appointed board and ordered the immediate restoration of the former leadership of the bank.
Court Orders Reinstatement of Former Board and Management
In the judgment delivered on Wednesday, the court directed that the previous board, led by Farouk Mohammed Gumel, alongside the management team, be reinstated without any delay. This decision effectively reverses the CBN's intervention, which had appointed Yetunde Oni as managing director and chief executive officer and Mannir Ubali Ringim as executive director in 2024.
The court also issued a restraining order, prohibiting the CBN, its appointed board, and their agents from taking further steps regarding the bank's recapitalisation or any related actions. This move addresses concerns raised by core shareholders about what they described as an unlawful recapitalisation plan introduced by the interim board.
Background and Legal Challenge
The dispute originated in January 2024 when the apex bank dissolved Union Bank's board and management. This decision was challenged in court by the bank's core shareholders, including Titan Trust, Luxis International, and Magna International. The investors filed an ex parte motion seeking a judicial review, arguing that the regulator failed to follow due process and acted unlawfully.
As part of their application, the shareholders requested the court to restrain the CBN, Union Bank, and the appointed directors from taking further action pending the determination of the case. On December 5, 2025, the court granted an interim order halting further actions, which has now been solidified with the final ruling.
Legal Representation and Defendants
The suit listed several defendants, including the CBN governor, the apex bank itself, Union Bank, and multiple directors associated with the interim board. Legal representation for the parties involved prominent senior lawyers: Olasupo Shasore led the team for the investors, Adeyemi Candide Johnson represented the CBN, Muiz Banire acted for the directors, and Koyin Ajayi represented Union Bank.
With Wednesday's judgment, the court has nullified the CBN's earlier decisions and affirmed the position of the claimants, providing a significant legal victory for the shareholders.
Union Bank's Merger and Customer Assurance
Meanwhile, Union Bank announced a successful merger with Titan Trust Bank in late 2025, a process that began in 2021. The bank fully absorbed Titan Trust Bank but maintained the Union Bank brand. Customers were assured that their account details remained unchanged and they could continue to access their funds without disruption.
In response to the CBN's recapitalisation exercise, Union Bank has reassured customers that their deposits are secure. The bank emphasised transparency and commitment to regulatory compliance during the recapitalisation processes, even as the CBN governor clarified distinct timelines for banks under regulatory intervention.
This ruling marks a critical development in Nigeria's banking sector, highlighting the judiciary's role in checking regulatory overreach and protecting shareholder rights.
