Customers left in limbo as court restores Union Bank board, reverses CBN takeover

Customers of Union Bank are facing uncertainty pursuing a ruling by the Federal High Court successful Lagos, which reinstated the bank’s committee and nullified the earlier takeover by the Central Bank of Nigeria (CBN).

Justice Chukwujekwu Aneke delivered the judgement connected Wednesday, declaring that the apex slope acted beyond its statutory authorization erstwhile it dissolved the committee and absorption of Union Bank.

The CBN had, successful January 2024, removed the bank’s leadership, citing regulatory infractions and concerns implicit fiscal instability.

However, successful its ruling, the tribunal held that the enactment contravened the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.

“The actions of the responsive are ultra vires and not successful compliance with the provisions of BOFIA 2020,” Justice Aneke ruled.

The lawsuit was instituted by Titan Trust Bank Limited, Luxis International DMCC, and Magna International DMCC, who claimed to beryllium the eventual beneficial owners of Union Bank.

Despite the court’s decision, the CBN maintained that determination is nary contiguous change to the bank’s status, creating a clash of positions that has unsettled customers.

The improvement has triggered wide disorder and concer...