CBN: Sacked Bank Workers To Get N5.7bn Compensation

By Tosin Olatokunbo

At last, bank workers who lost their jobs in 2006 due to the Bank Recapitalisation exercise have a reason to jubilate. They got a reprieve, yesterday after the National Industrial Court, NIC ordered the Central Bank of Nigeria, CBN and National Deposit Insurance Corporation, NDIC to pay the workers N5.7 billion for making them lose their jobs.

In 2018, over 1000 workers who lost their jobs took the two government agencies to court for wrongful termination of their appointment, arguing that they should not be made to suffer because their banks could not recapitalise.

In 2006, the then Governor of the CBN, Charles Soludo directed commercial banks in the country to raise their working capital to N25 billion from N2 billion. Many banks which failed to meet the deadline, were stopped from doing business while others merged with bigger banks.

This led to massive job losses in the sector. At least, over 1000 employees were believed to have been sent home after their respective banks stopped operation. The aggrieved workers, under their respective unions later took the CBN and NDIC to court.

Ruling on the matter brought by 1,116 workers on Monday, Justice Paul Bassi said the claimants were sacked unjustly, eventhough, the Consolidation was carried out in public interest, he said.
He ordered that the workers should be paid the amount as damages, within three months after the judgment, failure which the two agencies will also pay 10 per cent of the amount monthly until the judgment amount has been fully liquidated by CBN and NDIC.

The two defendants had raised several objections, among which is that they were not the employers of the workers and the suit disclosed no cause of action against them.

Justice Bassi, however, dismissed the preliminary objections of the defendants and held that they may have acted in the general good by raising the capital base of banks in the country, but added that the workers interests were not considered.

According to him, the CBN interfered with the employment contact of the claimants by withdrawing the licenses of the banks who failed to re-capitalise, leading to the workers losing their benefits to their former employers.

Speaking to The Source magazine,  on Tuesday, some jubilant workers said they were happy that they have finally received justice after 16 years. “It was a long and difficult  journey, ” said one of them, who simply identified herself  as Tolani, adding that ” our families  have really suffered but thank God we have received  justice for wrongful termination  of our appointments”.