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A legal conflict has emerged between the Central Bank of Nigeria, CBN, and a group of its former employees who were terminated during mass layoffs earlier in 2024.
The retrenched staff, represented by Stephen Gana and 32 others, have accused the apex bank of violating internal policies, Nigerian labor laws, and their contractual rights.
The dismissed employees filed a class-action suit at the National Industrial Court of Nigeria, NICN, in Abuja.
Their legal filing challenges the legality of the termination letters dated April 5, 2024, and titled “Reorganisational and Human Capital Restructuring.” The claimants argued that the process contravened Section 36 of the Nigerian Constitution and the CBN Human Resources Policies and Procedures Manual, HRPPM, which guarantees fair hearing and consultation before termination.
The claimants alleged that the layoffs were abrupt and arbitrary, asserting that they were given only three days to vacate their positions and hand over official property.
They are seeking judicial declarations that the terminations are null and void, demanding reinstatement, payment of salaries and benefits, and N30 billion in damages for emotional distress and reputational harm. Additionally, they requested N500 million as the cost of the suit and a restraining order to prevent further unlawful dismissals.
A key contention in the lawsuit is the alleged breach of Article 16.4.1 of the HRPPM, which mandates consultation with the Joint Consultative Council before any employment actions adversely affecting staff. The claimants argue that this provision was disregarded, leaving them financially devastated.
The layoffs carried out in four batches between March and May 2024, affected 218 employees, including 116 executives, 97 senior-level staff, and five junior-level workers.
Some staff, it was gathered, received severance payments as low as N5,000, while others claimed their gratuities were entirely absorbed to offset outstanding loans. Employees with 10 to 20 years of service were among those hit hardest, with many left in financial distress.
“After close to a decade of work, I was left with nothing but debt,” a former staff member who wished to remain anonymous said.
“By the time they had deducted my gratuity, I still owed the Bank over N30 million. How does anyone survive this?”
“Fifteen years of loyalty and hard work, and all I got was N5,000,” another former employee lamented.
“This is not just a breach of trust but an outright disgrace.”
In its preliminary objection, the CBN defended its actions, stating that the dismissals were part of an internal restructuring process and were carried out in accordance with contractual agreements.
The bank claimed it paid three months’ salary in lieu of notice to affected staff and denied allegations of unfair treatment. It also questioned the NICN’s jurisdiction over the case.
The presiding judge, Justice O.A. Obaseki Osaghae, urged both parties to consider an amicable resolution under Section 20 of the National Industrial Court Act.
The matter has been adjourned to January 29, for further proceedings or to review settlement progress.
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