CBN faces N30bn lawsuit from disengaged staff over mass layoffs

Former employees of the Central Bank of Nigeria (CBN) have filed a lawsuit demanding a N30 billion compensation following a mass layoff exercise carried out by the apex bank.

According to a court document obtained on Monday, the workers accused the CBN of breaching internal policies, Nigeria’s labour laws, and their contractual rights.

The claimants, led by Stephen Gana and 32 others, filed a class-action lawsuit at the National Industrial Court of Nigeria (NICN) in Abuja.

The claimants argued that their termination process, communicated through letters titled “Reorganisational and human restructuring”, and dated April 5, 2024, violated both the CBN Human Resources Policies and Procedures Manual (HRPPM) and Section 36 of the Nigerian Constitution.

They stated that the process lacked the mandatory consultation and fair hearing required by law.

In the originating summons filed on July 4, 2024, under the NICN Civil Procedure Rules 2017, the claimants posed several questions for the court’s determination, including whether their constitutional right to a fair hearing was denied before and after their appointments were terminated.

The workers further asserted that the termination letters, issued under the guise of “restructuring,” were arbitrary, unlawful, and unconstitutional.

Maintaining that they remain employees of the apex bank, the claimants are seeking a court declaration that their dismissals are “void and of no effect.”

They also requested an order restraining the CBN from terminating their employment without adhering to due process, immediate reinstatement, and payment of their salaries and benefits from the date of termination.

Read also: Departure of 1000 employees was not forced – CBN

The court filing cited Article 16.4.1 of the HRPPM, which requires consultation with the Joint Consultative Council (JCC) and strict adherence to fair procedures before any adverse employment action is taken against staff.

The claimants argued that this provision was blatantly ignored, as they were given only three days to vacate their positions and hand over official property.
They are also demanding N30 billion in general damages for the psychological distress, hardship, and reputational damage caused by their dismissal, along with an additional N500 million to cover the cost of the lawsuit.

In a document dated November 20, 2024, the court recommended an amicable resolution of the dispute.

The claimants were represented by Gana and their legal counsel, while the CBN (the defendant) was represented by Inam Wilson alongside seven other lawyers.

The presiding judge, Obaseki Osaghae acknowledged the defendant’s preliminary objection, filed on November 4, 2024, which challenged the admissibility of the suit.

In response, the claimants submitted a counter-affidavit, which their counsel confirmed had been duly served on the defendants.

Osaghae advised both parties to consider a settlement in accordance with Section 20 of the National Industrial Court Act (NICA) of 2006.

“It is my view that parties should attempt an amicable resolution of this dispute,” Osaghae stated.

The case was subsequently adjourned to January 29 for the hearing of the preliminary objection or to review the progress of any settlement discussions.

In 2024, the CBN terminated the employment of approximately 1,000 staff members across four batches between March and May.

While the dismissals were officially attributed to “reorganisation” and “human capital restructuring,” the affected employees argued that the process contravened the CBN Act, which requires board approval for major employment decisions.

Some employees alleged they received severance payments as low as N5,000, while others claimed their gratuities were entirely withheld to offset outstanding loans.
On December 4 last year, the CBN stated that its Early Exit Package (EEP) was entirely voluntary and carried no negative consequences for eligible staff.

The statement came in response to reports that 1,000 employees had been dismissed from the apex bank.

In reaction to the development, the House of Representatives called on the CBN to suspend the “planned” retirement of the affected staff.
The lower chamber also established an ad hoc committee to investigate the “process and legality” of the exercise.

Addressing the issue on January 3, Olayemi Cardoso, the CBN governor, clarified that the 1,000 employees who exited the bank did so voluntarily and were not compelled to leave.

Cardoso further explained that the early exit programme and the accompanying restructuring and reorganisation efforts were aimed at optimising the bank’s operations for improved efficiency.