A Federal High Court in Lagos has overturned the Central Bank of Nigeria’s 2024 takeover of Union Bank of Nigeria, ruling that regulators exceeded their legal authority when they dissolved the lender’s board and management.
The decision marks a significant reversal for the apex bank, which moved against the 108-year-old institution two years ago following a contentious probe into the activities of former Governor Godwin Emefiele. That investigation, led by special investigator Jim Obazee, had alleged that Union Bank was acquired by Titan Trust Bank Limited through proxies acting on Emefiele’s behalf.
By nullifying the regulatory action, the court declared the January 2024 dissolution of the board invalid. The ruling restores the standing of the original owners—Titan Trust and its Middle Eastern investors, Luxis International DMCC and Magna International DMCC, who had long maintained that the regulator’s move was an overreach.
The plaintiffs argued that the CBN’s intervention, which included appointing new management and initiating a recapitalisation process, unlawfully diluted their shareholding and stripped them of oversight.
Read Also: The many lives of Union Bank: A century of transformation
Following the judgment, Union Bank moved quickly to reassure its depositors and stakeholders of its financial health. In a statement to customers, the bank emphasised that the protracted legal and regulatory friction had no impact on its underlying stability.
“Through this period, your accounts and funds have remained and continue to remain completely safe,” the bank said. “Our teams across every branch and digital channel have continued to deliver the high standard of service you have come to expect.”
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
