The legal battle over Union Bank of Nigeria is raising fresh concerns over investor confidence and regulatory credibility in Nigeria’s banking sector, writes Sunday Eghiator
The intensifying legal confrontation between the Central Bank of Nigeria (CBN) and the former shareholders of Union Bank of Nigeria is rapidly assuming dimensions far beyond an ordinary banking dispute. What is unfolding in the courtroom has become a defining examination of regulatory accountability, sanctity of investment, and the wider credibility of Nigeria’s financial governance architecture before the global investment community.
At the centre of the controversy is the Federal High Court judgment delivered by Justice Chukwujekwu Aneke, which nullified the CBN’s January 2024 dissolution of Union Bank’s board and management, describing the intervention as ultra vires, unlawful, and inconsistent with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The judgment was particularly damaging because it did not merely question procedure; it fundamentally challenged the legal and evidential foundation of the intervention itself.
While the CBN has approached the appellate court seeking to overturn the ruling, the deeper issue emerging from the dispute is whether the apex bank’s aggressive legal response risks compounding concerns already raised by the lower court regarding due process, regulatory transparency, and investor protection.
