Former employees of the Central Bank of Nigeria (CBN), who were dismissed in a mass redundancy exercise last year, have taken legal action against the apex bank. The affected staff filed a lawsuit at the National Industrial Court of Nigeria (NICN) in Abuja, seeking ₦30 billion in damages.
The suit, initiated on July 4, 2024, under the NICN Civil Procedure Rules 2017, raises critical legal questions regarding the termination process. The claimants allege that their constitutional rights to a fair hearing were violated before and after their dismissal. They argue that the CBN contravened its internal policies, Nigerian labor laws, and contractual obligations.
Claims and Allegations
The 33 claimants, represented by Okwudili Abanum in a class action, include Stephen Gana, Kabiru Idris, Benedict Agbo, and others. They claim their dismissals, communicated through letters titled “Reorganisational and Human Capital Restructuring” dated April 5, 2024, were arbitrary, unlawful, and unconstitutional.
Key issues raised in the lawsuit include:
- Alleged violations of the CBN’s Human Resources Policies and Procedures Manual (HRPPM) and Section 36 of the Nigerian Constitution.
- Lack of consultation with the joint consultative council, as required by Article 16.4.1 of the HRPPM.
- Insufficient notice, with affected staff given just three days to vacate their roles.
The plaintiffs are seeking the court’s declaration that their terminations are null and void. They are also demanding reinstatement, full payment of salaries and benefits from the date of dismissal, and a restraining order preventing the CBN from future improper terminations.
Compensation Sought
In addition to reinstatement, the former staff are claiming:
- ₦30 billion in general damages for psychological distress, financial hardship, and reputational harm.
- ₦500 million to cover litigation costs.
Court Proceedings
The lawsuit was first mentioned in court on November 20, 2024. Justice O. A. Osaghae encouraged both parties to explore an amicable resolution, as provided under Section 20 of the National Industrial Court Act 2006. “This is a new matter. I urge the parties to attempt an amicable settlement,” the judge stated.
The CBN, represented by Senior Advocate of Nigeria (SAN) Inam Wilson, filed a preliminary objection to the claims, which was served on the plaintiffs on November 4, 2024. The court has adjourned the case to January 29, 2025, for a hearing on the objection.
Background
The mass layoff affected approximately 1,000 CBN employees in four batches between March and May 2024. While the dismissals were officially attributed to “reorganisation and human capital restructuring,” some staff alleged irregularities, including minimal severance pay and the use of gratuities to settle outstanding loans.
The claimants argue that these actions violated the CBN Act, which requires board approval for significant employment decisions. Meanwhile, the CBN maintains that its early exit program was voluntary and without adverse consequences for eligible participants, as stated in its December 4, 2024, release.
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