CBN Appeals Court Ruling on Union Bank Board Removal

The Central Bank of Nigeria (CBN) has filed an appeal against a Federal High Court ruling delivered on March 25, 2024, which nullified its intervention in the management of Union Bank Nigeria. The court ordered the reinstatement of the former board led by Farouk Moham Gumel and restrained the CBN from appointing a new board or taking further steps towards recapitalization.

The CBN filed a notice of appeal on March 26, raising 11 grounds to challenge the judgment, arguing that the lower court's decision resulted in a miscarriage of justice. The apex bank maintains that its intervention was in line with the Central Bank of Nigeria Act and the Banks and Other Financial Institutions Act of 2020, aimed at addressing severe financial distress at Union Bank, which included a capital shortfall exceeding ₦224 billion.

The CBN has requested the court to stay the execution of the judgment to prevent destabilization of the bank's operations and maintain public confidence in Nigeria's financial system.