CBN Responds to Court Ruling, Confirms Union Bank's Stability
The Central Bank of Nigeria (CBN) has issued a public assurance regarding the stability of Union Bank of Nigeria Plc, following a recent Federal High Court judgment that addressed the bank's leadership. In a statement released late Wednesday, the apex bank emphasized that Union Bank continues to operate normally and remains financially sound, capable of meeting all obligations to customers, depositors, and stakeholders.
Regulator Acknowledges and Reviews Court Decision
According to the statement signed by Acting Director of Corporate Communications, Hakama Sidi Ali, the CBN has taken note of the judgment delivered on March 25, 2026. The bank is currently in the process of obtaining the Certified True Copy of the judgment for a detailed and thorough review. The CBN reiterated its commitment to operating within the legal framework, stating that all its regulatory actions are guided by due process and its statutory mandate.
The regulator stressed that it remains dedicated to upholding the rule of law while fulfilling its responsibilities in the Nigerian financial system. It assured that Union Bank's operational and financial status has not been altered by the court ruling, and the bank maintains its capacity to function effectively.
Background of the Legal Dispute
The court case stems from actions taken by the CBN in January 2024, when the apex bank dissolved Union Bank's board and management. At that time, the CBN appointed Yetunde Oni as managing director and chief executive officer, along with Mannir Ubali Ringim as executive director. This decision was challenged in court by core shareholders of Union Bank, including Titan Trust, Luxis International, and Magna International.
The investors filed an ex parte motion seeking a judicial review, arguing that the CBN failed to follow due process in its intervention. They also opposed what they described as an unlawful recapitalisation plan introduced by the interim board. The shareholders requested the court to restrain the CBN, Union Bank, and the appointed directors from taking further action pending the case's determination.
Court's Ruling and Implications
In the judgment delivered by Justice Chukwujekwu Aneke, the Federal High Court ruled that the CBN acted beyond its statutory powers when it dissolved the board and management of Union Bank. The court set aside all actions taken by the CBN-appointed board and ordered the immediate restoration of the former leadership, led by Farouk Mohammed Gumel. Additionally, the court restrained the CBN, its appointed board, and their agents from proceeding with the bank's recapitalisation or any related actions.
The CBN has affirmed that it will continue to provide oversight to ensure Union Bank operates in a safe and stable manner, sustaining public confidence in the financial sector. The regulator's response underscores its focus on maintaining regulatory standards while navigating legal processes.
