Court Nullifies CBN’s Dissolution of Union Bank Board, Orders Immediate Reinstatement
- A Federal High Court ruled that the CBN exceeded its powers in dissolving Union Bank’s board in 2024
- The court ordered the immediate reinstatement of the former board and addressed the bank's recapitalisation
- The case was reportedly initiated by core shareholders who challenged the regulator’s actions as unlawful
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology, and macroeconomic trends in Nigeria.
A Federal High Court sitting in Lagos has ruled that the Central Bank of Nigeria acted beyond its statutory powers when it dissolved the board and management of Union Bank of Nigeria in January 2024.
Delivering judgment on Wednesday, Justice Chukwujekwu Aneke set aside all actions taken by the CBN-appointed board and ordered the immediate restoration of the former leadership of the bank, The Cable reported.
Source: Getty Images
Court orders reinstatement of former board
The court directed that the previous board, led by Farouk Mohammed Gumel, alongside the management team, be reinstated without delay.
It also restrained the CBN, its appointed board, and their agents from taking further steps regarding the bank’s recapitalisation or any related actions.
Background to the dispute
In January 2024, the apex bank dissolved Union Bank’s board and management, appointing Yetunde Oni as managing director/chief executive officer and Mannir Ubali Ringim as executive director.
The decision was challenged in court by the bank’s core shareholders, including Titan Trust, Luxis International, and Magna International.
The investors filed an ex parte motion seeking a judicial review of the CBN’s intervention, arguing that the regulator failed to follow due process.
They also opposed what they described as an “unlawful recapitalisation” plan introduced by the interim board.
As part of their application, the shareholders asked the court to restrain the CBN, Union Bank, and the appointed directors from taking further action pending the determination of the case.
Earlier court order and final ruling
On December 5, 2025, the court granted an interim order halting further actions on the matter.
With Wednesday’s judgment, the court has now nullified the CBN’s earlier decisions and affirmed the position of the claimants.
The suit listed several defendants, including the CBN governor, the apex bank, Union Bank, and multiple directors associated with the interim board.
Legal representation for the parties included senior lawyers such as Olasupo Shasore, who led the team for the investors, Adeyemi Candide Johnson for the CBN, Muiz Banire for the directors, and Koyin Ajayi for Union Bank.
Source: Getty Images
Meanwhile, Union Bank announced a successful merger with Titan Trust Bank in late 2025, even though the merger process started in 2021.
Union Bank fully absorbed Titan Trust Bank but maintained the former’s brand, while it assured its customers that account details remained the same and they could still access funds.
Union Bank assures customers on recapitalisation
Legit.ng earlier reported that the Union Bank has reassured customers that their deposits are secure amidst the CBN's recapitalisation exercise.
The CBN governor clarified distinct timelines for banks under regulatory intervention as the recapitalisation heats up.
Union Bank emphasised transparency and commitment to regulatory compliance during the recapitalisation processes.
Source: Legit.ng
