Central Bank of Nigeria Affirms Regulatory Oversight of Union Bank
The Central Bank of Nigeria (CBN) has reiterated its regulatory oversight of Union Bank of Nigeria Plc, assuring customers and stakeholders of the bank’s stability and capacity to fulfill its obligations. This statement follows a recent court ruling that invalidated the CBN’s prior actions regarding the bank’s governance.
In a communiqué released on Wednesday, Sidi Ali, the acting director of corporate communications at the CBN, acknowledged the judgment from the Federal High Court in Lagos, which addressed the regulatory actions initiated against Union Bank in January 2024. The CBN is currently in the process of obtaining an official copy of this judgment for comprehensive review and remains committed to upholding the rule of law and due process.
Court Judgment Challenges CBN’s Regulatory Actions
The assurance from the CBN follows a significant legal decision made by Justice Chukwujekwu Aneke, who overturned the CBN’s decision to dissolve Union Bank’s board and management. The court characterized the regulator’s actions as excessively overreaching and unlawful. Furthermore, it mandated the immediate reinstatement of the bank’s previous directors while preventing the CBN from making any further decisions that could impact the bank’s governance or recapitalization strategies.
Despite facing this judicial setback, the CBN emphasized that Union Bank’s ongoing operations and financial health remain unaffected. “The CBN assures the public that there is no change in Union Bank’s position and that it remains capable of fully fulfilling its obligations to its customers, depositors, and all stakeholders,” the statement indicated.
Commitment to Safe Banking Practices
The CBN pledged to maintain its regulatory oversight, emphasizing that it would ensure Union Bank operates under sound banking principles, thereby preserving public trust in the financial system. “The CBN will continue to provide the necessary regulatory oversight to ensure Union Bank operates in a safe, sound, and stable manner,” the bank’s statement concluded.
Background of the Dispute
This dispute traces back to January 2024 when the CBN dissolved Union Bank’s board and appointed interim management, led by Mr. Yetunde Oni as managing director and Mr. Manir Ubari Lingim as executive director. This intervention was perceived as a regulatory effort to stabilize the institution amid rising concerns over governance and capital adequacy, especially after its acquisition by Titan Trust Bank.
However, this move faced legal challenges from core shareholders, including Titan Trust Bank, Luxis International, and Magna International. The shareholders contended that the CBN’s actions breached established corporate governance norms and lacked due process. An interim order issued on December 5, 2025, had already restricted the CBN and its appointed management from making significant decisions while awaiting a final ruling on the matter.
Judicial Ruling Declares CBN Actions Unlawful
Justice Aneke’s ruling declared that the CBN’s actions lacked a legal foundation, effectively nullifying the decisions made by the CBN-appointed board during its administration. In light of this, the CBN has signaled its intention to uphold its supervisory role, ensuring that it acts strictly within its legal framework while fostering public confidence in the financial sector.
