Customers of Union Bank of Nigeria have been left in uncertainty after the Federal High Court in Lagos nullified the takeover of the bank by the Central Bank of Nigeria and ordered the reinstatement of its board.
Delivering judgment on Wednesday, Justice Chukwujekwu Aneke ruled that the apex bank exceeded its statutory powers when it dissolved the lender’s board and management.
The CBN had in January 2024 removed Union Bank’s leadership, citing regulatory breaches and concerns about the institution’s financial health.
However, the court held that the move violated provisions of the Banks and Other Financial Institutions Act 2020.
“The actions of the respondent are ultra vires and not in compliance with the provisions of BOFIA 2020,” Justice Aneke declared.
The suit was filed by Titan Trust Bank Limited, Luxis International DMDMCC,nd Magna International DMCC, who identified themselves as the ultimate beneficial owners of Union Bank.
Despite the ruling, the CBN insisted there is no immediate change to the bank’s operational status, creating a divergence in positions that has further unsettled customers.
The development has sparked widespread concern among account holders, many of whom remain unsure about the safety of their funds and the bank’s immediate future.
