The disengaged staff members of the Central Bank of Nigeria (CBN) have filed a lawsuit over their mass termination. The 33 former employees took the case before the National Industrial Court of Nigeria in Abuja, claiming several violations.
The claimants, led by Okwudili Abanum in a class action, filed the originating summons on July 4, 2024. They raised multiple legal issues, asking the court to determine whether their constitutional right to a fair hearing was violated.
Additionally, the former CBN employees argued that their termination breached Nigerian labour laws and the CBN’s internal policies. They also contended that the process violated their contractual rights.
Violation of CBN Policies and Constitutional Rights of Disengaged Staff
The claimants include prominent names like Stephen Gana, Kabiru Idris, and Benedict Agbo. They argue that the termination process violated the CBN’s human resources policies and the 1999 Constitution.
The terminations were carried out under the guise of “Reorganisational and Human Capital Restructuring,” dated April 5, 2024. According to the claimants, the process lacked the mandatory consultations and fair hearing required by law.
They have described the dismissal as arbitrary, illegal, and unconstitutional. The claimants are seeking an order declaring their termination null and void, and they want a restraining order to prevent future unlawful dismissals.
CBN Disengaged Staff Demand Reinstatement and Back Pay
The former CBN employees are seeking the immediate reinstatement of their positions. They have requested back pay, including salaries and benefits from the date of termination.
The claimants cited Article 16.4.1 of the CBN Human Resources Policies and Procedures Manual (HRPPM), which mandates consultations before taking adverse actions. They argue that this provision was blatantly disregarded, with just three days given to vacate their roles.
In addition, the disengaged staff are seeking N30bn in damages. This amount is intended to cover psychological distress, hardship, and reputational harm caused by their dismissal. An additional N500m is sought to cover legal costs.
Legal Proceedings and Preliminary Objections from CBN Disengaged Staff Case
The case was first mentioned on November 20, 2024, with Justice O. A. Osaghae urging both parties to seek an amicable resolution. He emphasized the need for cooperation, encouraging the parties to explore settlement options under Section 20 of the NICA 2006.
During the proceedings, the CBN, represented by Inam Wilson (SAN), raised a preliminary objection to the claimants’ suit. The court was informed that the CBN had recently been served with the claimants’ response to the objection.
The case was adjourned to January 29, 2025, for a hearing on the preliminary objection.
CBN Disengaged Staff Criticize Severance Packages and Unlawful Layoffs
In 2024, the CBN terminated approximately 1,000 staff members in four batches between March and May. Some of the disengaged staff claimed they received severance payments as low as N5,000.
Others asserted that their gratuities were used to offset outstanding loans, and some accused the CBN of violating the CBN Act. The CBN Act requires board approval for significant employment decisions, which the claimants argue was not obtained.
CBN’s Defence and Early Exit Package
On December 4, 2024, the CBN defended its actions, stating that the early exit package was entirely voluntary. The apex bank emphasized that there would be no negative consequences for staff who chose to participate.
Despite this, the CBN Disengaged staff members argue that their dismissal was improper and have taken legal action to seek justice and compensation.
