Court rules CBN acted unlawfully in dissolving Union Bank board
The Federal High Court in Lagos has reinstated the board of Union Bank, declaring the Central Bank of Nigeria’s dissolution of the board and management unlawful. Justice Chukwujekwu Aneke ruled that the CBN exceeded its statutory powers and failed to comply with the Banks and Other Financial Institutions Act 2020. The court found that the applicants’ rights were breached, as they were excluded from key decisions and not given a fair hearing. The CBN’s intervention, including the recapitalisation process, was nullified and the former board led by Farouk Mohammed Gumel was ordered to be reinstated.
TLDR
- Justice Chukwujekwu Aneke ruled that the CBN acted outside its statutory powers in dissolving Union Bank’s board and management.
- The court nullified all actions taken by the CBN-appointed management and ordered the immediate reinstatement of the previous board led by Farouk Mohammed Gumel.
- The court found that the applicants’ shareholding was reduced from 100 per cent to 40 per cent and that they were excluded from the recapitalisation process without legal justification.
- The CBN and other respondents were restrained from interfering in the governance of Union Bank or altering its ownership structure.
- Claims for additional damages were declined due to lack of oral evidence.
