\n\nA Federal High Court in Lagos has ruled that the Central Bank of Nigeria acted beyond its legal powers in dissolving the board and management of Union Bank of Nigeria, declaring the 2024 intervention unlawful. Delivering judgment, Justice Chukwujekwu Aneke held that the regulator’s actions were “ultra vires” and not in line with provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020, effectively nullifying the entire takeover. 
The court also set aside all decisions taken by the CBN-appointed interim management, including the recapitalisation process, and ordered the immediate reinstatement of the bank’s former board led by Farouk Gumel. It further restrained the apex bank and its agents from interfering in the bank’s governance, shareholding structure, or ongoing corporate decisions. The ruling followed a suit filed by core shareholders, including Titan Trust Bank and affiliated entities, who argued that the intervention diluted their ownership and excluded them from key decisions without due process. 
The case stems from the CBN’s January 2024 move to dissolve the boards of Union Bank and other financial institutions over alleged regulatory breaches and financial instability concerns. While the CBN defended its action as necessary to safeguard the banking system, the court emphasised that such powers must be exercised strictly within legal boundaries and are subject to judicial review. Analysts say the judgment could have far-reaching implications for regulatory oversight in Nigeria’s banking sector, particularly in balancing financial stability with the rule of law.
