Mass dismissal: Fired staff take CBN to court, make serious demand

Former employees of the Central Bank of Nigeria have gone to court to protest what they see as illegal and unfair dismissal from employment.
They ask the court to declare the termination process null and void and reinstate them as Apex bank personnel
They also want full payment of benefits and salaries from the date of their dismissal, and a restraining order to prevent the CBN from repeating such action.

Legit.ng Journalist Ruth Okwumbu-Imafidon has over a decade of experience and deep knowledge of the Nigerian corporate sector and emerging trends in the fintech space.

Former employees of the Central Bank of Nigeria (CBN), who were laid off in the 2024 mass layoffs, are suing the apex bank.

The class action, filed before the National Labor Court of Nigeria (NICN), Abuja is based on claims that the CBN’s actions violated Nigerian labor laws, internal policies and staff contractual rights.

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CBN Governor, Olayemi Cardoso — Recently, CBN Governor Olayemi Cardoso said that 1,000 employees who left in December 2024 did so voluntarily. Photo credit: CBN
Source: CGU

The plaintiffs, who will be represented by Stephen Gana and 32 others, alleged that the process was arbitrary and illegal and denied them the right to a fair hearing before or after the termination of their appointments, PREMIUM TIMES reports.

They argued that the termination of the appointments, issued through letters titled “Human Capital Restructuring and Reorganization”, dated April 5, 2024, violated Section 36 of the Nigerian Law. Constitution and the CBN Human Resources Policies and Procedures Manual (HRPPM).

Citing Article 16.4.1 of the HRPPM, which requires compliance with fair procedures and consultation with the Joint Advisory Council before taking actions that negatively affect staff, they alleged that this was omitted from the dismissal process and they were asked to leave their positions and hand over official property within three days.

What laid-off personnel demand

The original summons, filed on July 4, 2024, under the NICN Civil Procedure Rules of 2017, requires the court to determine, among other things, whether the plaintiffs were denied their right to a fair hearing, before and after the audience. termination exercise.

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The dismissed staff also pray that the court declare the dismissal null and void. They demand his immediate reinstatement and payment of all salaries and benefits from the date of dismissal.

They also want the court to grant a restraining order preventing the main bank from firing them without due process.

30 billion naira damages claims

They are also seeking claims worth N30 billion for psychological distress, hardship and damage to their reputation.

Their claims also include another N500 million as cost of the suit.

Details of the layoffs

The layoffs occurred between March and May 2024, and at least 218 employees were affected, including 116 executive-level employees, 97 senior-level employees and five junior-level workers.

Some affected staff complained that after the bank cleared their outstanding loans and staff cooperative loans, they were left with little or no compensation payments.

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Some who had worked less than 10 years even found themselves with unpaid loans as their tips could not cover their loans due to the short time worked.

They argued that the bank failed to obtain board approval for the exercise.

In its preliminary objection, the CBN defended its action by stating that the affected employees received three months’ salary in lieu of the required notice and that no contractual rights were violated.

About a month ago, the House of Representatives started an investigation to the extent of the CBN, arguing that the development raises questions about the criteria used.

CBN explains early release program

Meanwhile, CBN Governor Olayemi Cardoso recently addressed the national assembly in it departure of 1000 employees who left in December 2024.

Represented by Bala Bello, Deputy Director of Corporate Services, the CBN governor said the exit was part of a restructuring and reorganization plan to optimize performance and digitalize operations.