CBN's Actions Against Union Bank Ruled as Bad Faith

The Federal High Court of Nigeria ruled against the Central Bank of Nigeria (CBN) regarding its takeover of Union Bank, declaring the CBN's actions as bad faith. The court nullified the CBN's dismissal of Union Bank's former board of management and ordered the immediate restoration of the board.

Additionally, the court awarded shareholders 190 million naira. The CBN had intervened in January 2024, citing regulatory non-compliance and financial instability as reasons for dissolving the board.

However, the court found that the CBN's actions breached the directors' rights to a fair hearing and lacked legal justification. The court's judgment indicated that the CBN's intervention was not within its lawful jurisdiction, as it failed to adhere to regulatory directives and acted outside its authority.

Following the judgment, the CBN filed an appeal and sought to stay the execution of the court's order.