Disengaged CBN Staff Take Bank to Industrial Court Over Mass Layoffs, Demand Justice

A legal dispute has erupted between the Central Bank of Nigeria (CBN) and a group of former employees who were laid off during a wave of mass terminations in early 2024. The dismissed staff have accused the apex bank of violating labour laws, internal policies, and their contractual rights, and have taken the matter to the National Industrial Court of Nigeria (NICN) in Abuja.

The claimants, led by Stephen Gana, filed a class-action lawsuit, alleging that the dismissals breached Section 36 of the Nigerian Constitution and the CBN Human Resources Policies and Procedures Manual (HRPPM). According to court documents, the termination letters, issued under the guise of “Reorganisational and Human Capital Restructuring” on April 5, 2024, lacked the required consultation and fair hearing mandated by law. The former employees argue that the process was arbitrary, unlawful, and unconstitutional.

The plaintiffs have asked the court to declare the terminations null and void and to reinstate them as employees of the bank. They are also demanding back payment of salaries and benefits from the termination date, a restraining order against further dismissals without due process, and compensation totaling N30 billion for psychological distress, hardship, and reputational harm. An additional N500 million has been sought to cover the cost of the suit.

The court filings cite Article 16.4.1 of the HRPPM, which mandates consultation with the Joint Consultative Council before taking employment actions that adversely affect staff. The claimants allege that this provision was ignored, with some employees given just three days to vacate their positions and return official property.

The layoffs, conducted in four batches between March and May 2024, reportedly affected 218 employees, including 116 executive-level staff, 97 senior-level employees, and five junior-level workers. Many of those dismissed claim they received little to no severance compensation, with gratuities absorbed to settle outstanding loans. Some long-serving staff said they were left with as little as N5,000 after deductions.

Former employees with six to 10 years of service were particularly hard hit, with gratuities insufficient to cover their debts. One affected staff member revealed that they still owed the bank over N30 million after nearly a decade of service. Others reported similar experiences, describing the process as devastating and unjust.

The terminations were officially attributed to a restructuring initiative, but critics argue that the CBN failed to follow due process, including obtaining board approval as required under the CBN Act.

Presiding Justice O. A. Obaseki Osaghae of the NICN has urged both parties to seek an amicable resolution under Section 20 of the National Industrial Court Act (NICA) 2006. The matter is scheduled for a hearing on January 29, 2025, to address the CBN’s preliminary objection or review progress on potential settlement discussions.

The CBN, in its defense, insists that the layoffs were lawful and consistent with employee contracts, including three months’ salary in lieu of notice. It maintains that the terminations were part of a legitimate internal restructuring process, dismissing the lawsuit as baseless. The bank also questioned the NICN’s jurisdiction over the matter.