Lagos Court Nullifies CBN Union Bank Intervention

A Federal High Court in Lagos ruled on March 25, 2026, that the Central Bank of Nigeria acted beyond its statutory powers when it dissolved the board and management of Union Bank of Nigeria Plc in January 2024, nullifying the intervention and ordering the immediate reinstatement of the bank's former leadership.

Justice Chukwujekwu Aneke declared the Central Bank's actions ultra vires, meaning they exceeded the authority granted under the Banks and Other Financial Institutions Act of 2020. The court set aside the dissolution, invalidated all decisions and appointments made by the interim board appointed by the regulator, and restrained the Central Bank, its officials, and the interim management from further interfering in the bank's governance, including ongoing recapitalization efforts. The ruling stemmed from a suit filed by core shareholders, including Titan Trust Bank Limited, Luxis International DMCC, and Magna International DMCC, who claimed the intervention violated due process and diluted their ownership without justification.

The shareholders argued that the Central Bank's move breached their rights to fair hearing and corporate governance principles. They alleged their...