Court restores sacked Union Bank board, says CBN overstepped its authority

A federal high court sitting in Lagos has nullified the Central Bank of Nigeria’s decision to dissolve the board and management of Union Bank of Nigeria, ruling that the apex bank acted beyond its legal powers when it removed the bank’s leadership in January 2024.

Justice Chukwujekwu Aneke delivered the judgment on Wednesday, quashing all decisions and steps taken by the CBN-appointed interim board since its installation.

The court further ordered the immediate reinstatement of Union Bank’s former board and management, and barred the CBN, its appointed directors, and their agents from taking any further steps towards recapitalisation or any related action.

Yetunde Oni, Managing Director and Chief Executive Officer of Union Bank

The ruling is a significant legal setback for the CBN, which dissolved Union Bank’s board over a year ago and appointed Yetunde Oni as Managing Director and Chief Executive Officer, alongside Mannir Ubali Ringim as Executive Director.

That decision triggered a legal battle that has now ended with the court siding entirely with the bank’s core shareholders.

The shareholders who took the CBN to court and won

The case was brought by Titan Trust, Luxis International and Magna International, Union Bank’s core shareholders. They filed an ex parte motion at the federal high court in Lagos seeking a judicial review of the CBN’s actions.

They claimed the central bank did not properly replace the previous directors and that the interim board’s recapitalization plan was illegal. On December 5, 2025, the court issued a temporary order, and on Wednesday, they won the case with the court’s final decision.

Back story: Union Bank appoints Bayo Adeleke as board chairman, 7 others as members

The lawsuit names the following as defendants: the CBN governor, the CBN, and all 13 people appointed to the bank’s board and management under the temporary arrangement. These individuals include Bayo Adeleke, who became board chairman in December 2024, Yetunde Oni, and several other executive and non-executive directors.

Union Bank presented the appointment of its new board in December 2024 as the start of a fresh era. Adeleke, previously a Managing Director and Chief Executive of First Bank, was appointed as chairman along with seven other members.

Oni said the appointments showed the bank was serious about creating a strong leadership structure. However, major shareholders had already started a legal challenge a few months before, and the court’s decision on Wednesday reversed all the changes that came after.

Union Bank may miss CBN’s April capital deadline

The court’s decision creates uncertainty about the bank’s future. The court reinstated the old board and prevented the Central Bank of Nigeria (CBN) from moving forward with its recapitalization plan for Union Bank as it is currently structured.

This is a major issue because the CBN has given banks until April 2026 to meet new minimum capital requirements.

CBN governor, Olayemi Cardoso

Union Bank is one of Nigeria’s oldest commercial banks. The current legal questions about who is in charge need to be answered promptly.

A bank with two boards that don’t agree and a stalled plan to get more money will struggle, especially at a time when banks are required to raise more money or die.

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