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CBN: 33 layoff staff demands 30bn over contract termination

POSTED ON January 7, 2025 •   Business      BY Abiodun Saheed Omodara
Central Bank of Nigeria Building

ABUJA, Nigeria- Disengaged employees of the Central Bank of Nigeria, who were terminated in a mass layoff last year, have brought their case before the National Industrial Court of Nigeria in Abuja.

In an originating summons filed on July 4, 2024, in accordance with the NICN Civil Procedure Rules 2017, the claimants, numbering 33, raised multiple issues for the court's consideration.

Among other concerns, the former employees requested the court to ascertain whether their constitutional right to a fair hearing was infringed upon before and after their dismissals. They also claimed that the CBN violated internal policies, Nigerian labor 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 contended that the termination process, executed through letters titled “Reorganisational and Human Capital Restructuring” dated April 5, 2024, breached the CBN’s human resources policies and procedures manual as well as Section 36 of the 1999 Constitution.

The claimants further argued that the termination process lacked the necessary consultation and fair hearing mandated by law. They characterized the termination letters, issued under the pretext of restructuring, as arbitrary, illegal, and unconstitutional.

On these bases, the former employees sought a declaration from the court that their dismissals were null and void. They also requested a restraining order to prevent the CBN from terminating their employment without following proper procedures. Additionally, the claimants demanded immediate reinstatement to their positions, along with payment of salaries and benefits from the date of their termination. They referenced Article 16.4.1 of the Human Resources Policies and Procedures Manual (HRPPM), which requires consultation with the Joint Consultative Council and adherence to fair procedures before making employment decisions that negatively impact staff.

According to the claimants, the CBN blatantly ignored this provision, giving them only three days to vacate their positions and return official property. The group is also seeking N30 billion in general damages for psychological distress, hardship, and reputational damage caused by the dismissals, as well as an additional N500 million to cover legal costs.

 

During the initial mention of the case on November 20, 2024, the presiding judge, Justice O. A. Osaghae, encouraged both parties to seek 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 stated.

 

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

It is worth noting that in 2024, the apex bank terminated the employment of approximately 1,000 staff in four batches between March and May. Some affected employees reported receiving severance payments as low as N5,000, while others claimed their gratuities were entirely used to offset outstanding loans. Although the layoffs were officially attributed to “reorganisation and human capital restructuring,” the affected staff contended that the process violated the CBN Act, which mandates board approval for significant employment decisions.

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

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