By Wellington Jopelo
The Central Bank of Nigeria has filed an appeal against a Federal High Court judgment that nullified its takeover of Union Bank of Nigeria Plc and ordered the reinstatement of the bank’s former board.
The ruling, delivered on March 25, 2026 by Justice Chukwujekwu Aneke, held that the apex bank exceeded its powers in dissolving the board and management of the bank.
In response, the CBN assembled a strong legal team of Senior Advocates of Nigeria led by Yusuf Ali, SAN.
The legal team also includes 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 entire decision of the lower court.
The CBN argued that it acted within its legal authority under the Central Bank of Nigeria Act and the Banks and Other Financial Institutions Act, 2020, to intervene due to Union Bank’s financial condition.
According to the apex bank, evidence before the court showed that Union Bank had a negative capital adequacy ratio, a capital shortfall exceeding N224 billion, and a high level of non-performing loans at the time of intervention.
It maintained that the law empowers the CBN Governor to remove bank directors in critical situations and protects actions taken in good faith while performing statutory duties.
The apex bank also argued that the trial court failed to properly interpret these provisions, leading to what it described as a miscarriage of justice.
Alongside the appeal, the CBN filed a motion seeking to stop the execution of the judgment pending the outcome of the appeal.
It asked the court to prevent the reinstated directors from taking control of the bank or interfering with its operations, while urging all parties to maintain the status quo.
The respondents in the case 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 enforcing the judgment could disrupt Union Bank’s operations, weaken public confidence, and pose risks to the stability of Nigeria’s banking sector.