Nigerian central bank faces N30bn legal battle with sacked employees

The Central Bank of Nigeria has been dragged to the National Industrial Court of Nigeria in Abuja by some of its former staff members who were affected by a mass sacking last year.

In an originating summons filed on July 4, 2024, under the NICN Civil Procedure Rules 2017 and obtained by our correspondent on Monday, the claimants, 33 in number, raised several issues for the court to address, PUNCH reports.

Among other matters, the former employees asked the court to determine whether their constitutional right to a fair hearing was violated before and after their appointments were terminated.

They also alleged that the CBN breached internal policies, Nigerian labour laws, and their contractual rights.

The claimants include Stephen Gana, Kabiru Idris, Benedict Agbo, Peter Adeyemi, John Yisa, Eleanor Ihua, and others. Represented by Okwudili Abanum in a class action lawsuit, they argued that the termination process, carried out through letters titled “Reorganisational and Human Capital Restructuring” dated April 5, 2024, contravened the CBN’s human resources policies and procedures manual as well as Section 36 of the 1999 Constitution.

The claimants further asserted that the termination process lacked the mandatory consultation and fair hearing required by law.

They described the termination letters, issued under the guise of restructuring, as arbitrary, illegal, and unconstitutional.

On these grounds, the former staff members sought an order declaring their dismissal null and void.

They also requested a restraining order to prevent the CBN from terminating their employment without adhering to proper procedures.

Additionally, the claimants demanded an immediate reinstatement of their positions, with payment of salaries and benefits from the date of termination.

They cited Article 16.4.1 of the Human Resources Policies and Procedures Manual (HRPPM), which mandates consultation with the Joint Consultative Council and adherence to fair procedures before taking employment actions that adversely affect staff.

According to the claimants, the CBN flagrantly disregarded this provision, giving them only three days to vacate their positions and hand over official property.

The group is also seeking N30bn in general damages for psychological distress, hardship, and reputational harm caused by the dismissal, as well as an additional N500m to cover the cost of the suit.

During the first mention of the case on November 20, 2024, the presiding judge, Justice O. A. Osaghae, urged both parties to pursue an amicable resolution.

“This is a new matter, mentioned for the first time. I have reviewed the processes and believe that the parties should attempt an amicable resolution of this dispute. Consequently, parties are encouraged, pursuant to Section 20 of the NICA 2006, to seek amicable settlement,” Justice Osaghae said.

The CBN, represented by a legal team led by Inam Wilson (SAN), informed the court of a preliminary objection to the claimants’ suit filed on November 4, 2024.

The CBN’s counsel also noted that they had recently been served with the claimants’ response to the objection.

Following submissions by the defendant’s counsel, Justice Osaghae adjourned the case to January 29, 2025, for a hearing on the preliminary objection.

It should be recalled that in 2024, the apex bank terminated the appointments of approximately 1,000 staff in four batches between March and May.

Some affected staff claimed they received severance payments as low as N5,000, while others said their gratuities were entirely absorbed to offset outstanding loans.

Although the layoff was officially attributed to “reorganisation and human capital restructuring,” the affected staff argued that the process violated the CBN Act, which requires board approval for significant employment decisions.

On December 4, 2024, the apex bank stated that its early exit package was entirely voluntary and came without negative repercussions for eligible staff.