Court Voids CBN's Takeover of Union Bank, Orders Reinstatement

On Wednesday, January 2024, the Federal High Court in Lagos ruled that the Central Bank of Nigeria (CBN) acted beyond its legal authority in its controversial takeover of Union Bank Nigeria (UBN). Justice Chukwujekwu Anek declared the CBN's intervention unlawful, stating it violated the provisions of the Banks and Financial Institutions Act of 2020.

The court's judgment, in case number FHC/L/ Misc 1377/2025, was brought by Titan Trust Bank Limited alongside Luxi Intern DMCC and Magna Intern DMCC, who challenged the CBN's actions, including the removal of UBN's leadership and the installation of new management. The court found that the CBN's actions were ultra vires and invalidated the dissolution of the bank's board, ordering the immediate reinstatement of the former leadership, specifically Mr.

Farouk Moham Gumel. Additionally, the court restrained the CBN and its agents from interfering with the bank's governance, including attempts to restructure its shareholding or alter ownership during an ongoing recapitalization process.