Court Overturns CBN's Takeover of Union Bank Management

On January 2024, the Central Bank of Nigeria (CBN) intervened in Union Bank Nigeria PLC by dissolving its board and appointing new management, which led to a lawsuit filed by Titan Trust Bank Limited and others. The Federal High Court in Lagos, presided over by Justice Chukwujekwu Aneke, delivered a landmark judgment on January 25, 2025, declaring the CBN's actions unlawful and unconstitutional, exceeding its statutory powers under the Bank and Financial Institutions Act (BOFIA) 2020.

The court's 152-page ruling stated that the CBN's intervention violated fundamental rights and did not afford fair hearing to the affected shareholders. The judgment nullified the CBN's regulatory actions, reinstated the former board led by Mr.

Farouk Moham Gumel, and restrained the CBN from exercising powers related to the governance of the bank, including restructuring its share capital. The court emphasized that the CBN's actions lacked legal basis and were conducted in bad faith.