A Federal High Court in Lagos has voided the decision of the Central Bank of Nigeria (CBN) to dissolve the board and management of Union Bank of Nigeria, declaring the move unlawful.
Delivering judgment, the court held that the CBN acted beyond its legal powers, setting aside the January 2024 decision and all actions taken by the regulator-appointed leadership. The court also ordered the immediate reinstatement of the bank’s former board and management.
In addition, the court restrained the CBN and its agents from taking any further steps regarding the bank’s leadership or related actions, including moves tied to recapitalisation.
The case was brought before the court by core shareholders who challenged the legality of the CBN’s intervention, arguing that due process was not followed in removing the bank’s leadership.
This ruling marks a significant development in Nigeria’s banking sector, raising fresh questions about regulatory powers, corporate governance, and the limits of intervention by financial authorities.
