Court Nullifies CBN’s Sack of Union Bank Board; Orders Immediate Reinstatement of Farouk Gumel and Team While Halting Recapitalization Plans

The Central Bank of Nigeria (CBN) has suffered a significant legal defeat as a Federal High Court in Lagos overturned its 2024 takeover of Union Bank of Nigeria. On Wednesday morning, March 25, 2026, Justice Chukwujekwu Aneke delivered a “bombshell” judgment, declaring that the regulator exceeded its statutory authority when it summarily dissolved the bank’s board and management over two years ago.

The court’s decision “flips the script” on the apex bank’s aggressive regulatory stance. Justice Aneke quashed all actions taken by the interim, CBN-appointed board and directed that the previous leadership be restored to their offices with immediate effect. The ruling also places a “dead stop” on the ongoing recapitalization process for Union Bank, restraining the CBN and its appointees from diluting the shares of the original investors or taking any further administrative steps.

The legal battle began shortly after the January 2024 dissolution, which the CBN justified based on findings from a controversial probe into the activities of former Governor Godwin Emefiele. However, Union Bank’s core shareholders Titan Trust Bank and its international partners argued that the move was an unlawful “Solution” to a political investigation and was carried out without following due process. The court agreed, noting that the regulator must operate within the strict confines of the law, regardless of the investigative findings.

While the CBN has stated it is still studying the certified true copy of the judgment, the ruling creates an immediate shift in Nigeria’s banking landscape. For now, Farouk Gumel and the original management team are legally back in charge. The CBN has assured depositors that their funds remain safe and that the bank continues to meet its obligations, but the “union of wills” between the regulator and the bank’s owners has been completely severed by this landmark judicial intervention.