The CBN assures Union Bank stability following a judgment delivered on March 25, 2026, by the Federal High Court in Lagos concerning its regulatory action on Union Bank of Nigeria Plc.
The Central Bank of Nigeria stated that the bank remains fully operational and capable of meeting its obligations to customers, depositors, and stakeholders.
The clarification addresses public concern arising from the legal decision and reinforces confidence in Nigeria’s banking system.
The development stems from regulatory actions taken by the Central Bank of Nigeria in January 2024 involving Union Bank’s board and governance structure.
These actions became the subject of legal proceedings, culminating in the Federal High Court judgment delivered in Lagos on March 25, 2026.
Following the ruling, the apex bank issued an official statement to clarify its position and reassure the public on the status of Union Bank.
The response reflects the intersection of regulatory authority and judicial review within Nigeria’s financial system, particularly in matters involving governance and supervisory interventions.
In a statement signed by Acting Director of Corporate Communications, Hakama Sidi Ali, the Central Bank of Nigeria said: “The Central Bank of Nigeria (CBN) acknowledges the judgment delivered on Wednesday, March 25, 2026, by the Federal High Court in Lagos concerning its regulatory action on Union Bank of Nigeria Plc (UBN) in January 2024.”
The apex bank stated that it is taking formal steps in response to the ruling, noting: “The Bank is currently obtaining the Certified True Copy of the judgment and will review it carefully, reaffirming its unwavering commitment to the rule of law.”
Reaffirming its statutory mandate, the CBN added: “As the apex regulatory authority, the CBN remains committed to acting in accordance with its mandate and established legal processes.”
Addressing concerns about the bank’s operations, the regulator stated: “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 statement further emphasised continued oversight, noting: “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 CBN assures Union Bank stability at a critical point where regulatory action and judicial decisions converge in Nigeria’s banking sector.
The reassurance is significant for maintaining depositor confidence and preventing uncertainty that could affect financial system stability.
The development also highlights the role of the Central Bank in balancing regulatory enforcement with adherence to legal processes.
Continued oversight of Union Bank signals institutional continuity and reinforces the importance of governance frameworks within the financial sector.
For the broader economy, stability in a major commercial bank supports financial intermediation, protects customer deposits, and sustains confidence among investors and market participants.
