Nigeria: CBN assures depositors of Union Bank’s stability, says court ruling under review

The Central Bank of Nigeria (CBN) says it will review the court judgment nullifying its regulatory action on Union Bank of Nigeria (UBN), assuring that the commercial bank is stable.

Earlier on Wednesday, a federal high court sitting in Lagos ruled that the CBN acted beyond its powers when it sacked the board and management of Union Bank of Nigeria in January 2024.

Justice Chukwujekwu Aneke, delivering the judgment, quashed all the decisions and steps taken by the CBN-appointed board and ordered that the former board, led by Farouk Mohammed Gumel, and management be restored immediately.

The court also barred the CBN and its appointed board and their agents from taking any step or continuing any steps towards recapitalisation or any other related act.

Reacting to the development in a statement on Wednesday, the regulator acknowledged the ruling, but noted that UBN’s status remains unchanged.

“The Central Bank of Nigeria (CBN) acknowledges the judgment delivered on Wednesday, March 25, 2026, by the Federal High Court in Lagos concerning its regulatory action on Union Bank of Nigeria Plc (UBN) in January 2024,” the statement reads.

“The Bank is currently obtaining the Certified True Copy of the judgment and will review it carefully, reaffirming its unwavering commitment to the rule of law.

“As the apex regulatory authority, the CBN remains committed to acting in accordance with its mandate and established legal processes.

“The CBN assures the public that UBN’s status is unchanged and that it remains fully capable of meeting its obligations to customers, depositors, and all stakeholders.

The CBN will continue to provide the necessary regulatory oversight to ensure Union Bank operates in a safe, sound, and stable manner, while maintaining public confidence in the financial system.”

The court also prohibited the CBN and its appointed board and their agents from taking any step or continuing any steps towards recapitalisation or any other related act.

In January 2024, the CBN announced the dissolution of the board and management of the Union Bank, appointing Yetunde Oni as the managing director/chief executive officer, and Mannir Ubali Ringim as the executive director.

The core shareholders — Titan Trust, Luxis International and Magna International — launched the litigation by filing an ex-parte motion at the federal high court in Lagos to seek a judicial review of CBN’s actions.