Court Voids CBN’s Dissolution of Union Bank Board

LAGOS – In a landmark judgment delivered on Wednesday, a Federal High Court sitting in Lagos nullified the January 2024 dissolution of the Board and Management of Union Bank of Nigeria by the Central Bank of Nigeria (CBN).

​Justice Chukwujekwu Aneke, presiding over the matter, declared the apex bank’s action ultra vires, effectively stripping the CBN-appointed leadership of their authority and ordering the immediate restoration of the bank’s previous executives and directors.

​The Ruling

​The court’s decision quashes all actions taken by the interim board led by Managing Director Yetunde Oni and Executive Director Mannir Ubali Ringim, who were installed by the CBN following the original dissolution. Justice Aneke further issued a restraining order against the CBN and its agents, barring them from proceeding with any further governance changes or the proposed recapitalization of the institution.

​The judgment follows a legal challenge spearheaded by the bank’s core shareholders—Titan Trust Bank, Luxis International, and Magna International. The plaintiffs argued that the removal of the directors and the subsequent moves toward recapitalization were conducted without due process, describing the regulatory intervention as an unlawful exercise of power.

​The crisis traces back to January 10, 2024, when the CBN dissolved the boards of Union Bank, Keystone Bank, and Polaris Bank, citing regulatory non-compliance and corporate governance failures. At the time, the apex bank pointed to the findings of a Special Investigator, Jim Obazee, which alleged irregularities in the acquisition of Union Bank by Titan Trust Bank.

​However, the shareholders maintained that the acquisition—which saw Titan Trust Bank eventually merge into the 108-year-old Union Bank in September 2025—was conducted transparently and in full compliance with the Banks and Other Financial Institutions Act (BOFIA) 2020.

​This ruling comes at a critical juncture for the Nigerian banking sector. With the CBN’s March 31, 2026, deadline for the industry-wide recapitalization exercise just days away, the court’s injunction throws a wrench into Union Bank’s compliance roadmap.

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​While most Tier-1 and Tier-2 lenders have already met the new capital thresholds (set at ₦200 billion for national banks), Union Bank now faces a period of internal restructuring. The immediate reinstatement of the former board signals a major shift in the bank’s governance trajectory and may prompt a fresh regulatory review from the apex bank.

​As of Wednesday evening, the CBN has yet to issue an official statement regarding whether it intends to appeal the judgment or seek a stay of execution.