The Central Bank of Nigeria (CBN) has filed an appeal against the judgment of the Federal High Court, Lagos Division, which nullified its takeover of Union Bank of Nigeria Plc and ordered the reinstatement of the bank’s former board of directors.
The ruling, delivered on March 25, 2026 by Justice Chukwujekwu Aneke, held that the apex bank exceeded its statutory powers when it dissolved the bank’s board and management.
In response to the judgment, the CBN has constituted a legal team made up of prominent Senior Advocates of Nigeria (SANs) to prosecute the appeal.
The team is led by Yusuf Ali, SAN, with other members including Kemi Pinheiro, SAN; Tunde Fagbohunlu, SAN; Uche Val Obi, SAN; and Chukwudi Enebeli, SAN.
The appeal, filed on March 26, 2026, contains 11 grounds challenging the trial court’s decision.
In its appeal, the apex bank argued that it acted within its statutory authority under the Central Bank of Nigeria Act and the Banks and Other Financial Institutions Act (BOFIA) 2020 when it intervened in Union Bank’s operations.
According to the CBN, evidence before the trial court showed that the bank was facing serious financial challenges at the time of the intervention.
The regulator said Union Bank had a negative capital adequacy ratio, a capital shortfall exceeding ₦224 billion, and high levels of non-performing loans, which justified regulatory action to protect the stability of the banking system.
The CBN further maintained that Section 34 of BOFIA empowers the CBN Governor to remove directors and officers of a bank in critical condition.
It also cited Section 51 of the law, which protects actions taken in good faith by regulators in the discharge of their statutory responsibilities.
According to the apex bank, the trial court failed to properly interpret these provisions, leading to what it described as a miscarriage of justice.
The bank argued that the judgment wrongly declared its actions unlawful, ultra vires, and unconstitutional, and improperly nullified decisions taken by the management it appointed.
Alongside the appeal, the CBN filed a motion on notice seeking a stay of execution of the Federal High Court judgment pending the determination of the appeal.
The apex bank asked the court to restrain the reinstated directors and other respondents from taking control of Union Bank’s management and operations.
The motion also seeks to prevent them from convening board meetings, altering governance structures, or engaging in actions that could destabilise the bank.
The CBN further requested that all parties maintain the status quo until the appeal is determined.
Respondents in the appeal include Titan Trust Bank Limited, Luxis International DMCC, Magna International DMCC, and several former directors of Union Bank, including Bayo Adeleke and Yetunde Oni.
The parties had earlier approached the Federal High Court as beneficiaries of Union Bank shares, challenging the CBN’s intervention.
In an affidavit supporting the application for a stay of execution, the apex bank warned that enforcing the judgment could disrupt Union Bank’s governance and operations.
The CBN also said such a development could undermine public confidence in the banking sector and create systemic risk.
According to the regulator, the appeal raises significant legal questions regarding the scope of its regulatory authority under Nigeria’s banking laws.
The bank stressed that preserving the status quo is necessary to maintain stability in the financial system while the appellate court reviews the case.
