The central bank says Union Bank remains stable and fully operational after a court ruled it exceeded its powers in dissolving the bank’s board in 2024.

The Central Bank of Nigeria (CBN) has moved to reassure depositors and investors that Union Bank of Nigeria Plc remains stable and fully operational, following a court ruling that overturned a previous regulatory action against the lender.

In a statement issued on Thursday, the CBN said it had taken note of the Federal High Court judgment in Lagos concerning its January 2024 decision to dissolve the bank’s board and management. The apex bank added that it is in the process of obtaining the Certified True Copy of the ruling for detailed review.

CBI News reports that the court held that the CBN had acted beyond its legal powers in taking over the bank’s leadership, effectively nullifying the earlier intervention.

Responding to the ruling, the CBN reiterated its commitment to legal processes and regulatory responsibility. “As the apex regulatory authority, the CBN remains committed to acting in accordance with its mandate and established legal processes,” said Hakama Sidi-Ali, Acting Director of Corporate Communications.

She sought to calm concerns about the bank’s condition, stating that “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 regulator also emphasised its continued oversight of the institution. “The CBN will continue to provide the necessary regulatory oversight to ensure that the Union Bank operates in a safe, sound, and stable manner, while maintaining public confidence in the financial system,” Sidi-Ali added.

The development underscores ongoing tensions between regulatory authority and judicial oversight in Nigeria’s banking sector, even as the central bank seeks to maintain stability and confidence in the financial system.