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Disengaged staff drag CBN to court, seek N30bn compensation

Nathaniel Irobi by Nathaniel Irobi
January 7, 2025
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Disengaged staff drag CBN to court, seek N30bn compensation
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Disengaged staff members of the Central Bank of Nigeria (CBN), who were relieved of their jobs in a mass layoff last year have dragged the bank before the National Industrial Court of Nigeria in Abuja.

In an originating summons, filed on July 4, 2024, under the NICN Civil Procedure Rules 2017, the aggrieved staff members raised several questions for determination.

The Ex-CBN staff members among others, are asking the court to determine whether they were denied their constitutional right to a fair hearing before and after their appointments were terminated while they claimed that the CBN violated internal policies, Nigerian labour laws, and their contractual rights.

The claimants, Stephen Gana, Kabiru Idris, Benedict Agbo, Peter Adeyemi, John Yisa, Eleanor Ihua, Stephen Ambore, Edom Obi, Dabo Chundung, Ekpe-Oko Roupa, Alabi Mubarak, Isa Yusuf, Quadru Ralph, Olasupo Adedokun, Dauda Yusuf, Ogidi Tolu, Levi David, Umar Kurba, Christopher Alfred, Gana Nma, Tanko Joel, Iyare Christian, Paul Iza, Alzebeokhai Esiemokhai, Pius Odunze, Isiuwe Uwadiahu, Vivienne Usoro, Imoh Francis, Ofili Lydia, Onunkwor Christopher, Adeshina Nurudeen, Bukar Ahmed and Ajayi Omosolape.

All 33 of them, represented by Okwudili Abanum, in a class action lawsuit, argued that the termination process, carried out through letters, titled, ‘Reorganizational and Human Capital Restructuring’, dated April 5, 2024, violated both the CBN human resources policies and procedures manual and Section 36 of the Nigerian constitution.

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Adding that the process lacked the necessary consultation and fair hearing mandated by law.

They also stated that the termination letters, issued based on restructuring, were arbitrary, illegal, and unconstitutional.

On this note, the claimants sought an order declaring their dismissal null and void.

Additionally, the claimants sought a restraining order to prevent the CBN from firing them without following the proper procedures.

They also prayed to the court for a declaration ordering their immediate reinstatement, and payment of salaries and benefits from the date of termination.

The suit referenced Article 16.4.1 of the HRPPM, which mandates consultation with the joint consultative council and adherence to fair procedures before employment actions adversely affect staff.

The claimants noted that the provision was flagrantly disregarded, as they were given just three days to vacate their positions and hand over official property.

They also sought N30 billion in general damages for psychological distress, hardship, and reputational harm caused by the dismissal; and an additional N500 million as the cost of the suit.

In another document dated November 20, 2024, during the first mention of the suit, the court urged the parties in the dispute to seek an amicable resolution of the matter.

The presiding judge, Justice O. A. Osaghae said “This is a new matter, it is mentioned for the 1st time. I have looked at the processes and it is my view that parties should attempt an amicable resolution of this dispute. Consequential, parties are encouraged pursuant to section 20 of the NICA 2006, to attempt amicable settlement”.

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Meanwhile, the CBN represented by a team of lawyers led by Inam Wilson informed the court that they had filed a preliminary objection to the claimants’ suit dated November 4, 2024, and he had recently been served with the claimants’ wish to respond to the counter.

Justice Osaghae, following the defendant’s counsel submission, adjourned to January 29, 2025, for a hearing of the preliminary Objection.

Recall that in 2024, the apex bank terminated the appointments of about a thousand staff in four batches between March and May of the aforementioned year.

While some laid-off staff claimed that they received severance payments as low as N5,000, others said their gratuities were absorbed entirely 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 mandates board approval for significant employment decisions.

On December 4 last year, the Central Bank said its early exit package was entirely voluntary and without any negative repercussions for eligible staff.

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Nathaniel Irobi

Nathaniel Irobi

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