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

Justice Chukwujekwu Aneke delivered the judgment on Wednesday, declaring that the apex bank acted beyond its statutory authority when it dissolved the board and management of Union Bank.

The CBN had, in January 2024, removed the bank’s leadership, citing regulatory infractions and concerns over financial instability.

However, in its ruling, the court held that the action contravened the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.

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

The case was instituted by Titan Trust Bank Limited, Luxis International DMCC, and Magna International DMCC, who claimed to be the ultimate beneficial owners of Union Bank.

Despite the court’s decision, the CBN maintained that there is no immediate change to the bank’s status, creating a clash of positions that has unsettled customers.

The development has triggered widespread confusion and concern among account holders, many of whom are unsure about the safety of their funds and the bank’s operational direction.

Reacting to the situation, the President of the Bank Customers’ Association of Nigeria, Dr. Uju Ogunbunka, said the conflicting signals from the court and the regulator have deepened anxiety among customers.