The Central Bank of Nigeria (CBN) has filed an appeal challenging a Federal High Court ruling that nullified its takeover of Union Bank of Nigeria Plc.
The CBN Union Bank takeover appeal follows a judgment delivered on March 25, 2026, by Justice Chukwujekwu Aneke, who held that the apex bank exceeded its statutory powers by dissolving the bank’s board and management.
CBN Challenges Court Ruling
In response, the CBN described the judgment as legally flawed and inconsistent with its regulatory authority under Nigerian banking laws.
The appeal is being led by senior legal practitioner Yusuf Ali (SAN), alongside other top lawyers including:
Kemi Pinheiro (SAN),.Tunde Fagbohunlu (SAN), Uche Val Obi (SAN), Chukwudi Enebeli (SAN).
The CBN Union Bank takeover appeal raises 11 grounds, urging the appellate court to overturn the entire judgment.
CBN Defends Its Intervention
The apex bank maintained that its actions were necessary due to Union Bank’s financial condition at the time.
According to the CBN, the bank was facing:
Negative capital adequacy ratio
Capital shortfall exceeding ₦224 billion
High levels of non-performing loans
It argued that intervention was crucial to protect the stability of Nigeria’s financial system.
Legal Backing Under BOFIA
The CBN cited provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020, stating that:
Section 34 empowers the CBN Governor to remove bank directors in crisis situations
Section 51 protects actions taken in good faith
The apex bank insisted that the trial court misinterpreted these provisions, leading to what it described as a miscarriage of justice.
Motion for Stay of Execution
Alongside the appeal, the CBN filed a motion seeking a stay of execution of the judgment.
It warned that allowing reinstated directors to resume control could destabilise Union Bank’s operations and governance structure.
The CBN Union Bank takeover appeal also seeks to prevent:
Board or management meetings by the respondents
Changes to governance structures
Public statements that could affect the bank’s stability
Parties Involved in the Case
Respondents in the case include:
Titan Trust Bank Limited
Luxis International DMCC
Magna International DMCC
As well as former Union Bank directors like Bayo Adeleke and Yetunde Oni.
Awaiting Court Decision
The appellate court is yet to fix a date for hearing the appeal and the application for a stay of execution.
The CBN Union Bank takeover appeal is expected to set a major precedent regarding the scope of regulatory powers in Nigeria’s banking sector.
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