Justice Chukwujekwu Aneke of the Federal High Court, Lagos, has delivered a landmark judgment holding that the Central Bank of Nigeria (CBN) acted ultra vires when it dissolved the board and management of Union Bank of Nigeria Plc in January 2024.
In the 152‑page ruling (Suit No: FHC/L/MISC/1377/2025), the court found the intervention unlawful, unconstitutional, and beyond the statutory powers conferred under the Banks and Other Financial Institutions Act (BOFIA) 2020. The decision nullified the apex bank’s regulatory action, quashed its public announcement, and ordered the immediate restoration of the former board led by Farouk Mohammed Gumel.
The court further restrained the CBN from restructuring Union Bank’s share capital, altering its ownership structure, or pursuing recapitalisation under the regulator‑appointed board. Justice Aneke held that the intervention breached shareholders’ rights, reduced their stake from 100% to 40%, and excluded them from corporate decision‑making without fair hearing.
While acknowledging CBN’s supervisory role, the court stressed that regulatory powers must be exercised strictly within the confines of the law. It ruled that failure to comply with statutory provisions invalidates such actions, regardless of justification.
In response, the CBN stated it is reviewing the judgment and reaffirmed its commitment to due process and the rule of law. The apex bank assured the public that Union Bank remains stable and fully capable of meeting its obligations to customers, depositors, and stakeholders, emphasizing that operations are unaffected by the ruling.
... Federal High Court Declares CBN’s Dissolution of Union Bank Board Unlawful ... Naijaonpoint.