CBN confirms Union Bank stability and soundness following Lagos court ruling, assuring depositors and investors of financial security

The Central Bank of Nigeria (CBN) has reassured depositors and investors that Union Bank of Nigeria Plc (UBN) continues to operate in a safe, sound, and stable manner following a Federal High Court ruling in Lagos.

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The court, on 25 March 2026, ordered the reinstatement of Union Bank’s former board and management, ruling that the CBN exceeded its statutory powers when it dissolved the bank’s leadership in January 2024.

Justice Chukwujekwu Aneke set aside all decisions of the CBN-appointed interim board, effectively restoring the previous leadership led by Chairman Farouk Gumel.

In a statement, Acting Director of Corporate Communications at the CBN, Mrs Hakama Sidi Ali, said the apex bank is obtaining a Certified True Copy of the judgment for detailed review and that any subsequent steps will follow due legal process.

She emphasised that Union Bank remains financially robust and capable of meeting its obligations to customers and stakeholders.

The CBN highlighted its dual commitment to regulatory oversight and financial stability, noting that it will continue to monitor the bank to ensure compliance with prudential standards.

Analysts say the reassurance is crucial for maintaining trust in Nigeria’s banking sector amid heightened scrutiny of financial institutions.

The legal challenge, filed by Titan Trust Bank, Luxis International, and Magna International, contested both the removal of Union Bank’s leadership and the interim board’s proposed recapitalisation plan.

The plaintiffs sought to restrain the CBN and interim directors from taking further action pending determination of the suit.

Market watchers view the ruling as a pivotal moment in Nigerian banking, raising questions about the extent of regulatory authority and governance oversight.

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For Union Bank, it signals the return of its previous leadership while stakeholders closely monitor the transition and its implications for the bank’s strategic direction.