Court Overturns CBN Decision, Restores Union Bank Board

On January 24, 2024, Justice Chukwujekwu Aneke of the Federal High Court in Lagos ruled to reinstate the board of Union Bank, overturning the Central Bank of Nigeria's (CBN) decision to dissolve it. The court found that the CBN acted outside its statutory powers, declaring its intervention unlawful.

The ruling was in response to a suit (No. FHC/L/ Misc 1377/2025) filed against the CBN's actions, which included appointing new management and commencing a recapitalization process that would dilute existing shareholders.

Justice Aneke emphasized that the CBN's actions were ultra vires and inconsistent with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020. The court ordered the immediate reinstatement of the former board led by Mr.

Farouk Moham Gumel and restrained the CBN from further interference in the bank's governance. The court also noted that the CBN's failure to provide a fair hearing constituted a breach of fundamental rights.