The Central Bank of Nigeria (CBN) has filed an appeal against the judgment of the Federal High Court, Lagos, which nullified its intervention in Union Bank of Nigeria Plc and ordered the reinstatement of the bank’s former board of directors.
The appeal challenges the March 25, 2026 decision of Justice Chukwujekwu Aneke, who held that the apex bank exceeded its statutory authority in dissolving Union Bank’s board and management.
To prosecute the matter, the CBN has constituted a formidable team of Senior Advocates of Nigeria (SANs) led by Yusuf Ali, SAN, with Kemi Pinheiro, SAN, Tunde Fagbohunlu, SAN, Uche Val Obi, SAN, and Chukwudi Enebeli, SAN, as co‑counsel. The notice of appeal, signed by Pinheiro, raises 11 grounds and seeks to set aside the entire judgment.
In its arguments, the CBN maintains that its actions were lawful, relying on the Central Bank of Nigeria Act and the Banks and Other Financial Institutions Act (BOFIA) 2020. It contends that Union Bank was in severe financial distress at the time of intervention, citing a negative capital adequacy ratio, a capital shortfall of over ₦224 billion, and high non‑performing loans. The apex bank insists its measures were taken in good faith to protect systemic stability.
The appeal invokes Section 34 of BOFIA, which empowers the CBN Governor to remove directors of banks in critical condition, and Section 51, which shields regulatory actions taken in good faith. The CBN faults the trial court for misinterpreting these provisions, declaring its intervention unlawful, and restraining it from exercising oversight over Union Bank.
Additionally, the CBN argues that the respondents’ suit was statute‑barred, having been filed outside the three‑month limitation period. It has also filed a motion for stay of execution, seeking to restrain the reinstated directors and other respondents from enforcing the judgment, interfering with Union Bank’s operations, or engaging in publicity that could destabilise the institution.
The appeal lists the CBN and its Governor as appellants, while respondents include Titan Trust Bank Limited, Luxis International DMCC, Magna International DMCC, and former Union Bank directors such as Bayo Adeleke and Yetunde Oni.
In its supporting affidavit, the CBN warns that execution of the judgment could disrupt Union Bank’s governance, erode public confidence, and destabilise the financial system. It stresses that the appeal raises substantial legal questions on the scope of its regulatory powers, and that preserving the status quo is essential pending appellate determination.
