Legal Heavyweights Back CBN in Union Bank Court Battle
The Central Bank of Nigeria has taken fresh legal steps to challenge a Federal High Court decision that voided its intervention in Union Bank of Nigeria Plc and ordered the return of the bank’s former leadership.
The judgment, delivered by Justice Chukwujekwu Aneke on March 25, 2026, ruled that the apex bank acted beyond its powers in dissolving the bank’s board and management.
In response, the CBN has filed an appeal and assembled a team of Senior Advocates of Nigeria, led by Yusuf Ali, SAN to contest the ruling.
The legal team also includes Kemi Pinheiro, SAN; Tunde Fagbohunlu, SAN; Uche Val Obi, SAN; and Chukwudi Enebeli, SAN.
In its appeal, filed on March 26, the apex bank raised multiple grounds, arguing that the trial court failed to properly interpret the law guiding its regulatory powers.
The CBN maintained that its intervention was backed by provisions of the Central Bank of Nigeria Act and the Banks and Other Financial Institutions Act, 2020.
It stated that Union Bank was in a critical financial state at the time, with a negative capital adequacy ratio, a capital shortfall of over N224 billion, and rising non-performing loans.
According to the bank, these conditions required urgent regulatory action to protect depositors and maintain stability in the financial system.
The apex bank further argued that the law empowers it to remove directors of distressed banks and shields such actions when carried out in good faith.
Alongside the appeal, the CBN filed a motion seeking to halt the enforcement of the judgment pending the outcome of the case.
It urged the court to prevent the reinstated directors from taking control or interfering with the bank’s operations, while asking all parties to maintain the current situation.
The respondents include Titan Trust Bank Limited, Luxis International DMCC, Magna International DMCC, and former directors such as Bayo Adeleke and Yetunde Oni.
The CBN warned that allowing the judgment to stand without a stay could disrupt Union Bank’s operations and pose risks to public confidence and the stability of Nigeria’s banking sector.