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, declaring the action unlawful and beyond its legal powers.
The court ruled that the apex bank acted outside its statutory authority when it removed the bank’s leadership, describing the move as ultra vires.
Justice Chukwujekwu Aneke ordered the immediate reinstatement of the former board and management, effectively reversing all actions taken by the CBN-appointed leadership.
The court also set aside all decisions made by the interim board and restrained the CBN, its agents and appointees from taking any further steps regarding the bank, including actions tied to recapitalisation.
The case was brought by core shareholders who challenged the legality of the dissolution and subsequent management changes.
They argued that the removal of the board and related actions were carried out without due process and violated their rights as investors.
With the ruling, the court has effectively invalidated the CBN’s intervention in the bank’s leadership, setting the stage for significant changes in its governance structure.
