The Central Bank of Nigeria has assembled a high-powered team of Senior Advocates of Nigeriato challenge the Federal High Court, Lagos judgment that nullified its takeover of Union Bank of Nigeria Plc and ordered the reinstatement of the bank’s former board.
The apex bank filed a notice of appeal on March 26, 2026, opposing the March 25 ruling delivered by Justice Chukwujekwu Aneke, which found that the CBN exceeded its statutory powers in dissolving the bank’s board and management.
Heading the legal team is Yusuf Ali, SAN, joined by Kemi Pinheiro, SAN; Tunde Fagbohunlu, SAN; Uche Val Obi, SAN; and Chukwudi Enebeli, SAN.
In its appeal, the CBN advanced 11 grounds seeking to overturn the entire decision of the lower court.
The bank argued that its intervention in Union Bank was supported by the Central Bank of Nigeria Act and the Banks and Other Financial Institutions Act 2020, citing the bank’s deteriorating financial condition at the time.
According to the apex bank, evidence presented at trial showed that Union Bank had a negative capital adequacy ratio, a capital shortfall exceeding N224 billion, and a significant volume of non-performing loans, necessitating urgent regulatory action.
The CBN stressed that Section 34 of BOFIA empowers it to remove directors and officers of a distressed bank, while Section 51 safeguards actions taken in good faith within the scope of its statutory duties.
It criticised the trial court’s interpretation of these provisions, calling the judgment “a miscarriage of justice.”
The apex bank further argued that the court erred in declaring its actions unlawful, ultra vires, and unconstitutional, and in nullifying decisions taken by the management it appointed, without establishing any legal basis for reinstating the former board.
Meanwhile, the CBN has filed a motion seeking a stay of execution of the judgment pending the outcome of the appeal.
The application requests that the court restrain the reinstated directors and other respondents from taking control of the bank, interfering with its management, convening meetings, or altering its governance structure.
It also seeks to prevent actions, including media engagements, that could destabilise the bank, urging that all parties maintain the status quo until the appellate court delivers its ruling.
The respondents in the case include Titan Trust Bank Limited, Luxis International DMCC, Magna International DMCC, as well as former Union Bank directors Bayo Adeleke and Yetunde Oni. They approached the Federal High Court as beneficiaries of Union Bank shares, challenging the CBN’s intervention.
In an affidavit supporting its stay application, the CBN warned that enforcing the judgment could disrupt the bank’s operations, undermine public confidence, and pose systemic risks to the financial sector.
It emphasised that the appeal raises “critical questions on the scope of its regulatory powers” and warned that failing to grant a stay could render the appeal “nugatory.”
The apex bank added that maintaining the status quo is “essential to preserving stability in the banking system” while the appellate court considers issues with far-reaching implications for banking regulation in Nigeria.
