News
Court Orders First Bank to Pay Ex-Staff N23.3m for Wrongful Dismissal
An Abuja division of the National Industrial Court of Nigeria (NICN) has ordered First Bank Plc, to pay a total sum of N23,307,134.57 million, to one of its former staff, for wrongful and unlawful dismissal from work.
The court presided by Justice Edith N. Agbakoba, awarded the judgment sum against First Bank Plc, while delivering judgment in a suit marked NICN/ABJ/229/2015, filed by one Gbenga Giwa, a former employee of the bank who was unjustly dismissed from the bank over controversial N60 million fraud.
Giwa, who worked last with the bank as Deputy Manager (Construction/Infrastructures Desk), before his unjust dismissal, had approached the court through his counsel, Bola Aidi, for the following reliefs; “a declaration that the purported letter of dismissal dated May 4, 2015, served on the claimant is null, void and of no effect whatsoever.
“A declaration that his letter of resignation dated September 2, 2014 served on the defendant is valid and subsisting.
“An order mandating First Bank, to pay all his entitlements for service with the bank for over 20 years to wit: his gratuity; N6. 3 million; Total Emolument: salary N17, 290, million, representing salary for 1 year totaling: N23,590 million, with immediate effect.
“An order mandating the First Bank to pay him one year unpaid salary and emolument while he remains in the employment of the bank from June 28, 2013 to September 2, 2014 respectively before tendering his resignation, amounting to a total of N23,007,134.57 million.
“An order of perpetual injunction restraining the bank from using; the Police, SSS, Army, Navy, Air Force and any other Security Agencies to arrest, detain, harass, intimidate or oppress the him in any manner whatsoever in respect of any loan connected with his employment.
“An order for payment of the sum of N5 million, being specific damage for withholding his entitlements, rights and benefits contrary to the provisions of the Employee Handbook of the Defendant since 2014 till date. And the sum of N50 million, as general damages, for the physical, psychological and emotional trauma visited on him through the actions of the bank.
But, First Bank Plc in a preliminary objections and counterclaims to the suit, filed by its counsel, Ayodeji Ademola, asked the court for “a declaration that it’s letter dated May 4, 2015, summarily dismissing the claimant from her employment, is valid and that the Claimant’s purported resignation via a letter dated September 2, 2014, while under suspension and undergoing investigation is null and void having contravened the terms of his employment.
“A declaration that the Claimant was properly dismissed in line with the Employee Handbook of the Counter Claimant and the claimant is not entitled to any benefit.
“A declaration that the fraudulent and unauthorized debit transfers of N60 million, in two tranches of N30 million, each from the account of Webb Fontaine Limited. i.e. account no. 200739563 (Hong Kong), to the account of Eksato Engineering Services Limited (account no. 2011773133) on March 8, 2013, and May 28, 2013 through the active connivance of the Claimant constitutes a breach of contract.
“An order that the Claimant pays to the the sum of N50 million, only as damages for breach of contract and reputation damages. And an order of the court directing the claimant to pay forthwith the sum of N30 million, fraudulently transferred by the claimant from the Bank Account of Webb Fountaine Nigeria Limited which could not be recouped from the account of Eksato Engineering Services Limited.
“An order that the claimant pays to it the sum of N1,636,484.27 million, which represent the outstanding credit facility and/or staff loan obtained by the Claimant while in the service of the bank. And an award of N2 million only, as cost of this action. And award of interest at the rate 15 percent, per annum on the judgment sum starting from the dale judgment is delivered.
Justice Agbakoba in her judgment delivered on July 28, 2022, dismissed First Bank’s preliminary objections and counter-claims, on the ground that First bank failed to satisfy the court in proofing it’s case against that claimant.
Consequently Justice Agbakoba declared “that the purported letter of dismissal dated 4th May, 2015 served on the claimant is of no effect whatsoever.
“That the Claimant’s letter of resignation dated September 2, 2014 served on the bank is valid and binding.”
The judge also ordered that “by order of this court order the Defendant (First Bank Plc) shall pay to the Claimant the sum of N23, 007,134.57 million only, being his due one year’s salary for the period of June 28, 2013 to September 2, 2014. And cost of this suit is N300, 000.00.”
Justice Agbakoba further order that all sums payable within 60 days thereafter 10 percent interest per annum will attach.
Ogba Ogbaga, an Abuja-based lawyer, has said that he has been instructed to institute legal proceedings against MTN Nigeria, Airtel Nigeria, Globacom, 9mobile and MultiChoice Nigeria, operators of DStv, over what he described as unfair consumer practices relating to expiring data bundles and television subscriptions.
In a statement posted on Facebook, Ogbaga said his law firm, GIMBG Legals, received instructions from its client, KAA, also known as KaaTruths, to challenge the companies’ subscription policies in court.
According to him, the proposed suit will question whether telecom operators and DStv’s subscription models comply with provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018 and other applicable laws.
Ogbaga alleged that telecom providers operate internet data services that are unfair to consumers, claiming subscribers sometimes do not receive the services they paid for but still lose their subscriptions once the validity period expires.
He also criticised DStv’s subscription model, arguing that consumers lose paid viewing time due to factors such as power outages, adverse weather conditions and service interruptions, while subscriptions continue to count down regardless.
“Our clients have complained that MTN data services are unduly one-sided,” Ogbaga said, adding that the legal action would also extend to other telecommunications providers and DStv.
He said the court action would seek judicial determination on whether the companies’ subscription practices comply with consumer protection laws.
The lawyer also invited interested legal practitioners to collaborate on the case, saying his firm would provide updates as the matter progresses.
In a separate Facebook post on Wednesday, Ogbaga said previous policy discussions, town hall meetings and debates at the National Assembly had failed to address the concerns raised by consumers.
He argued that telecom operators regularly carry out maintenance and network upgrades that temporarily disrupt services without extending customers’ subscription periods, while DStv subscribers also lose viewing time because of electricity outages and weather-related disruptions.
The National Insurance Commission (NAICOM) has commenced the issuance of new licence certificates to insurance companies that successfully met the industry’s new minimum capital requirements, marking the formal beginning of a new regulatory era aimed at strengthening the financial capacity, governance and global competitiveness of Nigeria’s insurance sector.
At a ceremony held at the Commission’s headquarters in Abuja, the Commissioner for Insurance, Olusegun Ayo Omosehin, presented the new licence certificates to compliant operators, describing the exercise as a major milestone in the industry’s recapitalisation programme.
According to the Commission, a total of 43 insurance companies declared compliant with the new capital requirements are expected to receive the new licence certificates in phases.
Omosehin congratulated the successful companies, saying the issuance of the new licences signals the beginning of a stronger regulatory framework anchored on improved capitalisation, sound corporate governance, innovation and sustainable growth.
He urged operators to leverage their enhanced capital base to develop innovative insurance products, improve operational efficiency and deepen insurance penetration across the country.
The Commissioner said the Commission expects the recapitalised companies to deliver stronger financial performance while maintaining high standards of professionalism and customer service.
He also announced that NAICOM’s next major regulatory initiative would be the implementation of the Risk-Based Capital (RBC) framework, under which insurers’ capital levels would be aligned with the risks inherent in their respective business portfolios.
According to him, the new framework will further strengthen the industry’s resilience by ensuring that insurers maintain capital commensurate with the risks they underwrite, thereby enhancing policyholder protection and boosting market confidence.
Omosehin reaffirmed the Commission’s commitment to removing regulatory impediments where necessary while maintaining effective oversight to safeguard policyholders and strengthen confidence in the insurance market.
The issuance of the new licence certificates marks the commencement of a phased transition to higher capital standards aimed at improving the financial capacity, solvency and claims-paying ability of insurance companies operating in Nigeria.
Management of Nigeria CommunicationsWeek Media has withdrawn its publication titled “Adefolarin Ogunsanya and the Allegations of Shareholder Interference and Self-Dealing at Pan African Towers,” which was published on its platform.
The decision to retract the story follows an editorial review to ensure that the platform maintains the highest standards of accuracy, fairness and responsible journalism in reporting matters that are the subject of ongoing judicial proceedings.
Nigeria CommunicationsWeek acknowledges that the issues raised in the publication remain before the courts and have not been finally determined.
Accordingly, the organisation has decided to remove the article from its platforms pending the conclusion of the legal processes or the availability of additional verified information.
The publication regrets any inconvenience or misunderstanding the report may have caused to readers or any individuals or organisations mentioned in the story.
Nigeria CommunicationsWeek remains committed to the principles of balanced, factual and ethical journalism and will continue to uphold professional standards in its coverage of judicial and corporate governance matters.
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