CBN Appeals Court Ruling on Union Bank Takeover

The Central Bank of Nigeria (CBN) has filed an appeal on March 26, 2023, against a Federal High Court ruling delivered by Justice Chukwujekwu Aneke, which voided the CBN's takeover of Union Bank Nigeria PLC and reinstated the bank's former board of directors. The CBN contends that its actions were within its statutory authority as outlined in the Central Bank of Nigeria Act and the Banks and Other Financial Institutions Act (BOFIA) 2020, particularly due to Union Bank's severe financial distress, which included a capital shortfall exceeding N224 billion and high levels of non-performing loans.

The CBN has engaged a formidable legal team, led by Yusuf Ali SAN, to prosecute the appeal, raising 11 grounds challenging the lower court's decision. Additionally, the CBN has filed a motion seeking to stay the execution of the Federal High Court's judgment pending the determination of the appeal, requesting the court to restrain the reinstated directors from taking control of Union Bank and to maintain the status quo until the appeal is resolved.