Court Orders CBN, NDIC To Pay Bank Workers N5.7bn

A file photo of a court gavel.
A file photo of a court gavel.


The National Industrial Court sitting in Lagos has ordered the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) to pay over N5.7bn terminal benefits to over 1,000 bank workers affected by the re-capitalisation exercise of 2006.

The money is to be paid within three months from the date of judgment failing which it will attract 10 percent interest until liquidated.

Justice Paul Bassi made the order while delivering judgment on Monday in the case filed by 1,116 claimants who had approached the court since 2018.

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The court also ordered the CBN and the NDIC to pay another N10m as general damages to the claimants.

Shouts of joy

Shouts of joy emanated from the representatives of the bank workers after the court delivered judgment in their favour.

It’s a battle they’ve fought since the consolidation exercise of 2006 which saw banks recapitalised from N2bn to N25bn.

Their banks did not meet the recapitalization requirements and their banking licenses were revoked by the CBN which appointed the NDIC as the liquidator.

The bank workers then sued the two organisations demanding the payment of their terminal benefits.

The two defendants raised several objections, insisting among other things they were not the employers of the workers and the suit disclosed no cause of action against them.

In his judgment, Justice Bassi dismissed the preliminary objections of the defendants and held while they may have acted in the general good by raising the capital base of banks in the country, it should not be done at the expense of the former employees.

By revoking the banking licenses of the non-consolidated banks, the defendants interfered with the employment contracts of the bank workers, a contract which would ordinarily have run its natural course with the claimants paid their benefits at the end.

The court then ordered the CBN and the NDIC to pay the workers within three months from the date of judgment failing which which it will attract 10 percent interest until liquidated.

Court dismisses Trust Fund’s objection on MD’s sack

National Industrial Court (NIC) sitting on Thursday threw out an objection filed by Trustfund Pension Plc seeking to dismiss the claim of the company’s Managing Director, Bernard Nkem Ekwe who is challenging his purported removal from office.

The court presided over by Justice A.O. Shogbola, while dismissing the objection, said the court was empowered to hear cases involving disputes between employees and employers.

According to him “Following a careful perusal of the claims, it is very clear that the claimant is challenging his removal as the managing director of TrustFund Pensions Plc by the defendants.

“From the facts available to this court, the claimant was an employee of the defendants before his employment was brought to an end abruptly. This means that the issue involved in this matter has to do with employment or non-employment of the claimant.”

The court had earlier restrained the company from appointing a new managing director pending the determination of a suit filed by Ekwe.