Court Drama Over Union Bank: CBN Says “Your Money Is Safe”

The Central Bank of Nigeria (CBN) has moved quickly to calm nerves after a Lagos court overturned its earlier decision to take control of Union Bank of Nigeria (UBN).

In a ruling delivered on Wednesday, Justice Chukwujekwu Aneke of the Federal High Court said the CBN went beyond its powers when it dissolved the bank’s board and management in January 2024. The court ordered that the former leadership, headed by Farouk Mohammed Gumel, be reinstated immediately.

The judgment also stopped the apex bank and its appointed team from taking any further action including moves related to recapitalisation.

But despite the legal setback, the CBN says customers have nothing to worry about.

In its reaction, the regulator confirmed it is reviewing the judgment and awaiting the Certified True Copy. It also stressed that Union Bank remains stable and fully operational.

According to the CBN, the bank is still capable of meeting all its obligations to customers, depositors, and stakeholders. The regulator added that it remains committed to due process and will continue to oversee the bank to ensure it operates safely and maintains public confidence.

This development follows a legal challenge by the bank’s core investors Titan Trust, Luxis International, and Magna International who asked the court to review the CBN’s earlier intervention.

While the legal battle continues, the key message from the CBN is clear: Union Bank is steady, and depositors’ funds are not at risk.