Court Orders Reinstatement of Union Bank Management

On January 24, 2024, Justice Chukwujekwu Aneke of the Federal High Court in Lagos ruled against the Central Bank of Nigeria (CBN), declaring its dissolution of the Union Bank Nigeria PLC Board as unlawful. The court found that the CBN acted beyond its statutory powers, violating the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.

The suit, numbered FHC/L/ Misc 1377/2025, was filed by Titan Trust Bank Limited and other entities challenging the CBN's decision to dissolve the board and appoint new management, which was seen as a precursor to a recapitalization process that allegedly diluted shareholder interests. The court ordered the immediate reinstatement of the former board management led by Farouk Moham Gumel and restrained the CBN from exercising governance powers over the bank, including restructuring its share capital.

The court emphasized that the CBN's actions were taken in bad faith and without legal justification, noting that the bank's management had suffered continuous injury due to the CBN's decisions.