Former employees of the Central Bank of Nigeria, CBN, who were affected by a large-scale layoff last year, have initiated legal action against the bank.
Reports from The Cable indicate that the workers accused the CBN of breaching internal guidelines, Nigerian labor laws, and their employment agreements.
The lawsuit, filed as a class action by Stephen Gana and 32 others, was submitted to the National Industrial Court of Nigeria, NICN, in Abuja.
According to the claimants, the termination process, conveyed through letters titled ‘Reorganizational and Human Capital Restructuring’ and dated April 5, 2024, contravened the CBN’s Human Resources Policies and Procedures Manual, HRPPM, as well as Section 36 of the Nigerian Constitution.
The workers alleged that the process failed to provide the required consultation and fair hearing as stipulated by law.
The originating summons, submitted on July 4, 2024, under the NICN Civil Procedure Rules 2017, sought the court’s ruling on whether the claimants were denied their constitutional right to fair hearing before and after their termination.
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They also claimed that the dismissal letters, citing “restructuring” as the reason, were unlawful, arbitrary, and unconstitutional.
The claimants urged the court to declare their termination “void and useless,” insisting that they remain employees of the CBN.
Furthermore, they requested a court order barring the CBN from terminating their appointments without adhering to proper procedures, reinstatement of their positions, and payment of all outstanding salaries and benefits from the date of their dismissal.
The court documents referenced Article 16.4.1 of the HRPPM, which mandates consultation with the joint consultative council, JCC, and the observance of fair processes before making employment decisions affecting staff.
The claimants argued that this provision was blatantly ignored, as they were given only three days to leave their roles and hand over official assets.
They are also demanding N30 billion in general damages for the psychological trauma, hardship, and damage to their reputation caused by the layoffs, as well as an additional N500 million to cover the costs of the lawsuit.
In a separate document dated November 20, 2024, the court encouraged the parties to explore an amicable resolution.
Stephen Gana and his legal team represented the claimants, while Inam Wilson and seven other lawyers appeared on behalf of the CBN.
In the document, Obaseki Osaghae, the presiding judge at the industrial court, acknowledged the preliminary objection filed by the CBN on November 4, 2024, which challenged the admissibility of the case.
The claimants responded to the objection with a counter-affidavit, which their counsel confirmed had been served to the defendant.
The judge, in turn, urged both parties to pursue a resolution under 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 matter was subsequently adjourned to January 29 for either the hearing of the preliminary objection or an update on settlement discussions.
Overview of the CBN Staff Reductions
In 2024, the CBN terminated the employment of approximately 1,000 staff members. The layoffs were reportedly conducted in four phases between March and May of that year.
Some of the affected workers claimed that severance payments were as low as N5,000, while others reported that their gratuities were entirely withheld to offset outstanding loans.
Though the CBN attributed the layoffs to “reorganisation” and “human capital restructuring,” the dismissed employees argued that the process violated the CBN Act, which requires board approval for major employment decisions.
On December 4, 2024, the CBN stated that its Early Exit Package, EEP, was entirely voluntary and carried no adverse consequences for eligible staff.
This statement came in response to reports that 1,000 employees had been dismissed by the bank.
Reacting to the situation, the House of Representatives directed the CBN to halt the “planned” retirement of the 1,000 workers.
The House also formed an ad hoc committee to examine the “process and legality” of the exercise.
Addressing the matter on January 3, the CBN Governor, Olayemi Cardoso, asserted that the 1,000 staff members who exited the bank did so voluntarily.
Cardoso explained that the restructuring, reorganisation, and early exit programme were measures to enhance the bank’s operational efficiency.
Crediblenewsng.com
