Key Developments
Disengaged staff members of the Central Bank of Nigeria (CBN), terminated during a mass layoff in 2024, have filed a lawsuit against the apex bank at the National Industrial Court of Nigeria (NICN) in Abuja.
The 33 former employees, represented by Okwudili Abanum in a class action suit, allege that the CBN violated constitutional provisions, internal policies, and labour laws in terminating their employment.
Claims and Allegations
- Violation of Fair Hearing Rights:
- The claimants argue that their right to fair hearing under Section 36 of the 1999 Constitution was breached before and after their termination.
- Breach of HR Policies:
- The lawsuit cites Article 16.4.1 of the CBN’s Human Resources Policies and Procedures Manual (HRPPM), which mandates consultation with the Joint Consultative Council before employment decisions that adversely affect staff.
- Arbitrary Dismissal:
- Termination letters titled “Reorganisational and Human Capital Restructuring,” dated April 5, 2024, were described as arbitrary, illegal, and unconstitutional.
- Demand for Remedies:
- The claimants seek:
- Declaration of their dismissals as null and void.
- Immediate reinstatement with payment of all salaries and benefits since termination.
- ₦30 billion in general damages for distress and reputational harm.
- ₦500 million to cover the cost of the suit.
- The claimants seek:
- Gratuity Concerns:
- Some terminated staff alleged receiving severance as low as ₦5,000, while others claimed their gratuities were used to offset loans.
Court Proceedings
- Case Mention: On November 20, 2024, Justice O. A. Osaghae of the NICN encouraged an amicable resolution, invoking Section 20 of the NICA 2006.
- CBN’s Preliminary Objection: Filed on November 4, 2024, the CBN’s legal team, led by Inam Wilson (SAN), argued against the claimants’ suit.
- Next Hearing: The case was adjourned to January 29, 2025, for a hearing on the preliminary objection.
Background
The layoffs, involving approximately 1,000 staff in four batches from March to May 2024, were officially attributed to “reorganisation and human capital restructuring.” However, the affected staff claim the process violated the CBN Act, which requires board approval for significant employment decisions.
Implications and Next Steps
The outcome of this case could set a precedent for labour disputes involving public institutions. With ₦30 billion in damages at stake, the CBN faces significant financial and reputational risks if the claimants succeed.
Justice Osaghae’s suggestion for an amicable resolution highlights the importance of mediation in resolving labour disputes, particularly in cases involving mass layoffs and sensitive legal claims.
