The Central Bank of Nigeria (CBN) has reiterated its commitment to maintaining regulatory oversight of Union Bank of Nigeria’s operations following a court ruling that overturned its decision to remove the bank’s leadership.
The reaffirmation came after a Federal High Court in Lagos on Wednesday nullified the CBN’s decision, in January 2024, that authorised the removal of the board and management of Union Bank of Nigeria.
The court, in its ruling, declared that the CBN’s action was beyond its legal control (ultra vires), and ordered immediate reinstatement of the bank’s former leadership.
The judgement further restrained the central bank, its appointees, and agents from taking any further steps against the Union Bank, which includes actions relating to the proposed recapitalisation of the bank or any related measures.
It also held that the actions of the CBN-appointed board were subject to review, describing them as agents of the apex bank.
While reacting to the court ruling in a statement signed by its Acting Director, Corporate Communications, Hakama Sidi Ali, on Wednesday, the CBN said it remains fully capable of meeting the Union Bank’s obligations to customers, depositors, and all stakeholders.
The central bank acknowledged the judgment and reaffirmed its unwavering commitment to the rule of law. The BN stated that it will obtain the “Certified True Copy” of the judgment for careful review.
“As the apex regulatory authority, the CBN remains committed to acting in accordance with its mandate and established legal processes.”
The CBN also assured that it will continue to provide the necessary regulatory oversight to ensure Union Bank operates in a safe and stable manner, while maintaining public confidence in the financial system.
“The CBN assures the public that UBN’s status is unchanged and that it remains fully capable of meeting its obligations to customers, depositors, and all stakeholders.
“The CBN will continue to provide the necessary regulatory oversight to ensure Union Bank operates in a safe, sound, and stable manner, while maintaining public confidence in the financial system,” the statement read.
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