Court Nullifies CBN Dissolution of Union Bank Board

Court Nullifies CBN Dissolution of Union Bank Board, Orders Immediate Reinstatement
Judge orders reinstatement, halts recapitalisation and restructuring actions.
Shareholders argued action violated due process and legal provisions.

A Federal High Court sitting in Lagos has nullified the January 2024 dissolution of the board and management of Union Bank of Nigeria by the Central Bank of Nigeria (CBN), declaring the action unlawful.

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EKO HOT BLOG reports that delivering judgment on Wednesday, Justice Chukwujekwu Aneke held that the apex bank acted beyond its statutory powers in removing the bank’s leadership. The court subsequently quashed all decisions taken by the CBN-appointed board and ordered the immediate restoration of the former board and management.

The judge also restrained the CBN, its appointees, and agents from taking further steps concerning the bank’s affairs. This includes actions related to the proposed recapitalisation, effectively halting ongoing restructuring efforts.

The dispute originated in January 2024 when the CBN dissolved the bank’s board and management and appointed Yetunde Oni as Managing Director and Mannir Ubali Ringim as Executive Director to oversee operations. The move was met with strong opposition from key stakeholders.

Core shareholders, including Titan Trust Bank, Luxis International, and Magna International, challenged the decision in court. They argued that the removal of the directors and the planned recapitalisation were carried out without due process, describing the actions as unlawful.

The applicants also sought an order restraining the CBN, Union Bank, and the appointed directors from taking further steps pending the determination of the case. On December 5, 2025, the court granted interim reliefs in their favour, placing aspects of the apex bank’s intervention on hold.

Defendants in the suit included the CBN Governor, the apex bank, and individuals linked to the interim board and management.

With this ruling, the court has invalidated all actions taken by the CBN regarding the leadership changes at Union Bank, bringing a legal end to the dispute.