LAGOS, NIGERIA – A Federal High Court in Lagos has voided the Central Bank of Nigeria’s (CBN) dissolution of the Union Bank board, ruling that the apex bank acted outside its statutory powers.
Justice Chuka Obiozor, in a judgment delivered on Wednesday, declared the CBN’s directive removing the bank’s directors and management as illegal, null, and void. The court held that the CBN lacked the authority to dissolve a properly constituted board without following due process as prescribed by the Banks and Other Financial Institutions Act (BOFIA).
The court further ordered the immediate reinstatement of the board and management and awarded damages against the CBN for the unlawful action.
“The CBN cannot act as a law unto itself. The procedure for intervention in a bank’s affairs is clearly defined by statute, and the apex bank failed to follow that procedure,” the judge ruled.
The CBN had in early 2024 dissolved the Union Bank board following a dispute over ownership structure and allegations of corporate governance breaches. The bank’s directors challenged the action, leading to the legal battle.
The CBN is yet to issue an official response to the judgment. Legal analysts say the ruling could have far-reaching implications for the CBN’s regulatory powers over financial institutions in Nigeria.
Disclaimer: © 2026 CDA News Nigeria. All rights reserved.
Privacy Policy: CDA News Nigeria is committed to protecting your privacy. We collect and use personal information solely for delivering news updates and improving your experience. Your data is never shared with third parties without explicit consent. For full details, visit our website www.cdanews.ng.
Contact: For news tips, inquiries, or feedback, contact CDA News Nigeria at info@cdanews.ng.
