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CBN, NDIC ordered to pay failed bank workers N5.7bn

The National Industrial Court sitting in Lagos has ordered the Central Bank of Nigeria (CBN), and the Nigeria Deposit Insurance Corporation (NDIC), to pay over N5.7billion terminal benefits to over 1,000 bank workers affected by the recapitalisation exercise of 2006.

The money is to be paid within three months from the date of judgment failing which it will attract 10% interest until liquidated.

Justice Paul Bassi made the order while delivering judgment yesterday in the case filed by 1,116 claimants who had approached the court since 2018.

The court also ordered the CBN and the NDIC to pay another N10million as general damages to the claimants.

By revoking the banking licences of the non-consolidated banks, the defendants interfered with the employment contracts of the bank workers, a contract which would ordinarily have run its natural course with the claimants paid their benefits at the end.

Shouts of joy

Shouts of joy sprung from the representatives of the bank workers after the court delivered judgment in their favour, considering that they have been on the case since the consolidation exercise of 2006, which saw banks recapitalised from N2billion to N25billion.

Their banks did not meet the recapitalization requirements and their banking licences were revoked by the CBN, which appointed the NDIC as the liquidator.

The bank workers then sued the two organisations demanding the payment of their terminal benefits.

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

In his judgment, Justice Bassi dismissed the preliminary objections of the defendants and held that while they may have acted in the general good by raising the capital base of banks in the country, it should not be done at the expense of the former employees.

By revoking the banking licences of the non-consolidated banks, the defendants interfered with the employment contracts of the bank workers, a contract which would ordinarily have run its natural course with the claimants paid their benefits at the end. (ChannelsTV)

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