CBN Mobilises Authorized Heavyweights To Overturn Courtroom Ruling On Union Financial institution Takeover

The Central Bank of Nigeria (CBN) has filed an attraction in opposition to the Federal Excessive Courtroom, Lagos Division’s judgment that voided its takeover of Union Bank of Nigeria Plc and ordered the reinstatement of the financial institution’s former board of administrators.

The March 25, 2026 ruling, delivered by Justice Chukwujekwu Aneke, held that the apex financial institution acted past its statutory powers in dissolving the board and administration of Union Financial institution.

In response, the CBN has engaged a formidable authorized group of Senior Advocates of Nigeria (SANs) to prosecute the attraction, led by Yusuf Ali, SAN.

Different members of the group embrace Kemi Pinheiro, SAN; Tunde Fagbohunlu, SAN; Uche Val Obi, SAN; and Chukwudi Enebeli, SAN.

The attraction, filed on March 26, 2026, raises 11 grounds difficult the decrease court docket’s determination in its entirety.

The CBN contended that it acted inside its statutory authority beneath the Central Bank of Nigeria Act and the Banks and Different Monetary Establishments Act (BOFIA) 2020 to intervene in Union Financial institution’s affairs resulting from extreme monetary misery.

Proof earlier than the trial court docket, the apex financial institution argued, confirmed that on the time of intervention, Union Financial institution had a unfavorable capital adequacy ratio, a capital shortfall exceeding N224 billion, and excessive ranges of non-performing loans, justifying regulatory motion to safeguard the banking system.

The CBN additional maintained that Part 34 of BOFIA empowers the Governor to take away administrators and officers of a financial institution in important situation, whereas Part 51 protects actions taken in good religion within the discharge of statutory duties.

It argued that the decrease court docket didn’t interpret these provisions appropriately, leading to a miscarriage of justice.

In accordance with the apex financial institution, the judgment incorrectly declared its actions illegal, extremely vires, and unconstitutional, and wrongly nullified the acts of the administration it appointed, together with board selections and administrative acts, with out establishing a authorized obligation for the previous board’s reinstatement.

At the side of the attraction, the CBN filed a movement on discover looking for a keep of execution of the Federal Excessive Courtroom judgment pending the willpower of the attraction.

The movement asks the court docket to restrain the reinstated administrators and different respondents from taking management of Union Financial institution, interfering with its administration and operations, convening board or administration conferences, or altering governance constructions.

It additionally seeks to stop respondents from partaking in media publicity or actions that might destabilize the financial institution, and requests an order directing all events to keep up the established order till the attraction is resolved.

The respondents within the attraction embrace Titan Trust Bank Restricted, Luxis Worldwide DMCC, Magna Worldwide DMCC, and a number of other former administrators of Union Financial institution, together with Bayo Adeleke and Yetunde Oni.

That they had approached the Federal Excessive Courtroom as final beneficiaries of Union Financial institution shares, difficult the CBN’s intervention.

In an affidavit supporting the keep utility, the CBN warned that execution of the judgment might disrupt Union Financial institution’s governance and operations, undermine public confidence within the banking sector, and create systemic danger.

The apex financial institution emphasised that the attraction raises substantial questions of legislation relating to the scope of its regulatory powers and that failure to grant a keep might render the attraction worthless.

Preserving the established order, it argued, is important to making sure stability within the banking sector and permitting the appellate court docket to correctly adjudicate a case that might have far-reaching implications for regulatory authority beneath Nigeria’s banking legal guidelines.