A legal battle is brewing between the Central Bank of Nigeria (CBN) and its former employees, who were dismissed in a series of mass termination of appointments earlier in 2024.
The retrenched staff alleged that the apex bank violated internal policies, Nigerian labour laws, and their contractual rights.
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Represented by Stephen Gana and 32 others, the claimants filed a class-action lawsuit at the National Industrial Court of Nigeria (NICN), Abuja.
The court documents claimed that their termination exercise, issued through letters titled “Reorganisational and Human Capital Restructuring”, dated 5 April 2024, contravened Section 36 of the Nigerian Constitution and the CBN Human Resources Policies and Procedures Manual (HRPPM).
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The claimants argued that the process lacked the required consultation and fair hearing mandated by law.
The originating summons, filed pursuant to the NICN Civil Procedure Rules 2017 on 4 July 2024, outlines several questions for the court’s determination, chief among which is whether the claimants were denied their constitutional right to a fair hearing before and after the termination of their appointments.
They further contended that the termination letters, issued on the grounds of “restructuring,” were arbitrary, unlawful, and unconstitutional.
The dismissed employees are seeking judicial declarations that their terminations are null, void, and of no effect, insisting that they remain employees of the apex bank.
They also demanded their immediate reinstatement, payment of salaries and benefits from the date of termination, and a restraining order against any further attempts by the CBN to dismiss them outside due process.
The court filing references 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 alleged that this provision was flagrantly disregarded, as they were given just three days to vacate their positions and hand over official property.
Additionally, the claimants are seeking N30 billion in general damages for psychological distress, hardship, and reputational harm caused by the dismissal. They have also requested a further N500 million as the cost of the suit.
The retrenched staff argued that they enjoyed a status often referred to in labour law as “statutory flavour” which imposes stricter conditions on their dismissal compared to regular employment contracts, including adherence to public service rules and other governing statutes.
Amicable Resolution
The court on 20 November 2024 urged an amicable resolution in the lawsuit.
Documents seen by PREMIUM TIMES showed that Presiding Justice O. A. Obaseki Osaghae noted that the claimants were represented by Stephen Salawu Gana and their counsel, while CBN was represented by its legal team, headed by Senior Advocate of Nigeria (SAN) Inam Wilson.
The court acknowledged the defendant’s preliminary objection, filed on 4 November 2024, challenging the suit’s admissibility. The claimants responded with a counter-affidavit, which their counsel confirmed had been served.
Justice Obaseki Osaghae, in her remarks, noted the case’s first mention and encouraged both parties to explore a settlement under Section 20 of the National Industrial Court Act (NICA) 2006.
“It is my view that parties should attempt an amicable resolution of this dispute,” she stated.
The matter was adjourned to 29 January 2025 for the hearing of the preliminary objection or to review the progress of any settlement discussions.
Layoff Background
Documents obtained by this newspaper reveal that the termination of appointments, conducted in four batches between March and May 2024, left many employees financially devastated.
Some workers claimed that they received severance payments as low as N5,000, while others claim their gratuities were absorbed entirely to offset outstanding loans.
The terminations were officially attributed to a “reorganisation” and “human capital restructuring,” but the retrenched staff argued that the process violated the CBN Act, which mandates board approval for significant employment decisions.
“There is no evidence that the Board approved these dismissals,” said one affected employee. “The Bank acted arbitrarily, bypassing due process and leaving us with no option but to seek justice in court.”
So far, 218 employees are said to have been affected by the mass terminations that took place between March and May 2024.
The breakdown of those affected includes 116 executive-level staff, 97 senior-level employees, and five junior-level workers. These terminations were implemented in four batches, with the largest batch involving 129 employees, primarily at the executive and senior levels.
Hardest Hit
The massive layoffs were done in four batches on 15 March, 22 March, 5 April, and 24 May.
Staff affected by the first batch appear to be the worst hit. Documents seen by this newspaper showed that their letters failed to specify whether they would receive severance payments or any form of compensation.
“The new strategic direction of the Bank has been widely publicised. In line with our new mission and vision, the Bank is currently undergoing a significant organisational and human capital restructuring process. As a result of this review, I have been directed to notify you that your services will no longer be required with effect from Friday, 15 March 2024. You are kindly requested to hand over all Bank’s properties in your possession to your Department’s Administrator, with immediate effect,” it read.
Sources close to the matter disclosed that employees with six to 10 years of service were informed that their gratuities would be used to offset outstanding loans with the bank.
“After close to a decade of work, I was left with nothing but debt,” said one former staff member who wished to remain anonymous. “By the time they had deducted my gratuity, I still owed the Bank over N30 million. How does anyone survive this?”
According to him, some staff still owe the bank between N25 million to N35 million, as their gratuities were insufficient due to the relatively short time they had worked.
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Although subsequent batches, dated 22 March, 24 May, and 5 April, assured recipients that final entitlements would be calculated and paid,, they too lacked critical details about severance packages, payment timelines, or specific benefits.
“You are kindly requested to hand over all Bank’s properties in your possession to your Department’s Administrator, with immediate effect. Meanwhile, your final entitlement will be paid to you after your indebtedness to the Bank has been determined,” it read.
Staff who had worked for 10 to 20 years were reportedly left with severance payments as low as N5,000 to N6,000.
“Fifteen years of loyalty and hard work, and all I got was N5,000,” said another former employee. “This is not just a breach of trust but an outright disgrace.”
The deductions were attributed to the bank’s policy of using gratuities to clear outstanding loan balances, including staff cooperative loans.
“They took everything from us—our gratuities, allowances, and dignity,” said one affected staff. “What little was left after deductions could barely cover a week’s expenses.”
CBN’s Defence
In its preliminary statement of objection, the CBN defended its decision to terminate the employment of several staff members, insisting the action was carried out in line with the terms of their contracts.
The bank argued that it paid the affected employees three months’ salary in lieu of notice, as stipulated in their agreements, and maintained that the dismissals were not linked to any allegations of misconduct or wrongdoing.
It described the termination as part of an internal restructuring process, which it claimed fell within its rights as an organisation. Rejecting the claimants’ assertions of unfair treatment, the CBN dismissed the suit as frivolous and lacking in merit.
It also raised jurisdictional objections, contending that the case did not fall within the remit of the National Industrial Court, and vowed to rely on a series of documents, including board resolutions and termination notices, to support its position.
Efforts to obtain a response from the bank regarding the allegations were unsuccessful.
Calls to the bank’s spokesperson, Hakama Ali, did not connect, and a text message seeking clarification on on the layoffs and addressing claims of inadequate severance packages went unanswered. Additionally, a follow-up email to her official address was not responded to as of the time of publication.
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