CBN, ABU Lose Appeal as Court Upholds N2.5bn Judgment for Unlawfully Sacked Workers
The Court of Appeal sitting in Abuja has dismissed moves by the Central Bank of Nigeria (CBN) and Ahmadu Bello University (ABU) to block the payment of ₦2.5 billion awarded to 110 former university employees dismissed in 1996.
In two separate but unanimous decisions delivered on Friday by a three-man panel of justices, the appellate court ordered the CBN to immediately release the judgment sum to the affected workers, bringing an end to years of legal resistance.
Delivering the lead judgment, Justice Okon Abang warned that stiff sanctions would be imposed on officials of the apex bank if it continued to delay the disbursement of funds which had remained in its custody since 2018 after being deposited by ABU for settlement of the judgment debt.
The court rejected the CBN’s argument that the former workers could not enforce payment through garnishee proceedings, despite having been reinstated by the National Industrial Court after being unlawfully laid off.
Justice Abang also dismissed the bank’s claim that approval from the Attorney General of the Federation and Minister of Justice was required before payment could be made, describing the argument as unfounded.
Both CBN and ABU had separately appealed against the decision of the National Industrial Court, which ruled that the 110 workers were illegally disengaged by the then Sole Administrator of the university, General Mamman Kontagora, and were entitled to their benefits.
They also challenged the garnishee proceedings initiated by the workers as a means of enforcing the judgment.
However, the appellate court found the appeals lacking in merit and dismissed them in their entirety.
It would be recalled that on January 27, 2022, Justice Rakiya Haastrup of the National Industrial Court issued a garnishee order absolute directing the CBN to pay the judgment sum from funds belonging to ABU.
Upholding that decision, the Court of Appeal ruled that the workers acted lawfully by approaching the CBN to recover their entitlements, stressing that the bank had no justification for opposing the payment.
The court criticised the apex bank for expending public funds on legal actions aimed at frustrating the enforcement of a valid court judgment, describing its conduct as irresponsible and prejudicial to the welfare of the affected workers.
Justice Abang noted that the CBN’s role was not to act as an advocate but to comply with court orders, particularly since there was no subsisting order restraining payment.
He further faulted the bank’s legal team for supporting actions that prolonged the suffering of the workers, who have endured years of hardship following the prolonged litigation.
“The workers are entitled to enjoy the fruits of their judgment,” the court held, adding that there was no legal basis for the appeal since no claim had been made directly against the CBN.
Consequently, the Court of Appeal awarded ₦5 million each against the CBN and ABU as costs, payable to the workers, in addition to the ₦2.5 billion judgment sum.
