Federal High Court restores Union Bank board, nullifying CBN takeover, leaving customers uncertain about the bank’s operations and fund security
Customers of Union Bank are unsettled after the Federal High Court in Lagos reinstated the bank’s board, overturning the Central Bank of Nigeria’s (CBN) earlier takeover.
Justice Chukwujekwu Aneke ruled on Wednesday that the CBN acted beyond its statutory authority when it removed Union Bank’s leadership in January 2024, citing regulatory breaches and financial instability.
“The actions of the respondent are ultra vires and not in compliance with the provisions of BOFIA 2020,” Justice Aneke said.
The court case was brought by Titan Trust Bank Limited, Luxis International DMCC, and Magna International DMCC, claiming to be the ultimate beneficial owners of Union Bank.
Despite the ruling, the CBN stated there would be no immediate change to the bank’s operations, leaving customers confused about the safety of their funds and the bank’s direction.
Dr. Uju Ogunbunka, President of the Bank Customers’ Association of Nigeria, expressed concern, saying conflicting signals from the court and regulator have heightened anxiety among account holders.
