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The Central Bank of Nigeria (CBN) has reassured anxious Nigerians and investors that Union Bank of Nigeria Plc (UBN) remains safe and stable.
The reassurance followed market concerns that sprang up after a Federal High Court judgment in Lagos related to its regulatory action on the lender.
In a statement released on Wednesday night by the Acting Director, Corporate Communications of the apex bank, Mrs Hakama Sidi Ali, it acknowledged the March 25, 2026 ruling and confirmed that it is in the process of obtaining the Certified True Copy of the judgment for detailed legal review.
It stressed that any next steps would strictly follow due process, cementing its commitment to the rule of law and institutional transparency.
Beyond the legal process, the CBN delivered a clear message to depositors and investors that Union Bank remains financially sound.
The regulator stated that the bank “continues to operate in a safe, sound and stable manner,” and is fully capable of meeting all its obligations to customers and stakeholders.
The swift intervention accentuates the CBN’s sensitivity to market sentiment, particularly in a financial system where confidence is critical. By reaffirming Union Bank’s health, the central bank effectively sought to pre-empt any panic that could arise from misinterpretation of the court decision.
“As the apex regulatory authority, the CBN remains committed to acting in accordance with its mandate and established legal processes,” the statement said, signalling a careful balance between enforcing regulatory actions and preserving systemic stability.
The CBN also reiterated its ongoing supervisory role, noting that it will continue to provide the necessary oversight to ensure Union Bank’s compliance with prudential standards and its continued resilience. This assurance, analysts say, is key to maintaining trust in Nigeria’s banking sector, especially at a time of heightened scrutiny of financial institutions.
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Market watchers note that the development highlights the central bank’s wider strategy of combining regulatory discipline with proactive communication.
A Federal High Court sitting in Lagos, on Wednesday, ordered the reinstatement of the former board and management of Union Bank of Nigeria, ruling that the Central Bank of Nigeria (CBN) acted beyond its statutory powers when it dissolved the bank’s leadership in January 2024.
Delivering judgment on Wednesday, Justice Chukwujekwu Aneke, set aside all decisions taken by the CBN-appointed board, effectively restoring the previous leadership led by Chairman Farouk Gumel. The court held that the apex bank’s intervention in the bank’s governance structure was unlawful.
The case was initiated by key shareholders, Titan Trust Bank, Luxis International, and Magna International, who approached the court through an ex-parte motion seeking a judicial review of the CBN’s actions. The applicants challenged both the removal of Union Bank’s board and management and the proposed recapitalisation plan introduced by the interim board installed by the regulator.
They also sought an order restraining the CBN, Union Bank, and the appointed directors from taking further steps regarding what they described as an “unlawful recapitalisation” pending the determination of the suit.
On December 5, 2025, the court granted an interim order halting further actions, paving the way for a full hearing of the matter. Wednesday’s judgment now brings the legal dispute to a head, nullifying the regulator’s earlier decisions and reinstating the bank’s former leadership.
Listed as defendants in the suit were the CBN Governor, the Central Bank of Nigeria, and several individuals associated with the interim board, including Bayo Adeleke, Yetunde B. Oni, Oluyinka Abimbola Morgan, Ibrahim Musa Oruma, Chiamaka Ezenwa, Mohammed Balarabe, Eileen Shaiyen, Mojisola Olateru-Olagbegi, Mannir Ringim, Taiwo Shote, Kelechi Nwaoba, and Union Bank itself.
The ruling marks a significant development in Nigeria’s banking sector, raising fresh questions about the scope of regulatory powers and corporate governance within financial institutions. It also sets the stage for potential next steps by the CBN, which may seek to appeal the decision or adjust its regulatory approach in line with the court’s pronouncement.
For Union Bank, the judgment signals a return to its previous leadership structure, even as stakeholders watch closely to see how the transition unfolds and what it means for the bank’s stability and strategic direction.
