Court Orders Payment of N1bn to Former Workers as Ecobank Acquires Another Bank
- The National Industrial Court's Lagos division has mandated that Ecobank Nigeria Limited pay N1,086,611,589 to ex-workers of Oceanic Bank
- The decision was made on July 16, 2024 by Justice R. H. Gwandu in response to an appeal that Ecobank had filed against the previous finding
- Following an application to appeal, the court granted the Order Nisi as requested and rejected the request to halt the judgment's enforcement
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Ecobank Nigeria Limited has been ordered by the National Industrial Court Lagos division to pay N1,086,611,589.11, which is a judgment debt, into the Chief Registrar of the National Industrial Court's account while the court hears and decides Ecobank Bank's appeal against the court's decision.
Source: UGC
On July 16, 2024, Justice R. H. Gwandu issued the ruling in response to an appeal filed by Ecobank against the earlier ruling, which had ordered the bank to reimburse 1,742 former employees of Oceanic Bank for unpaid gratuities and staff savings.
The bank was unsuccessful in its request for a stay of execution. Nonetheless, while the appeal was being considered, the court approved the ex-employees' request for an Order Nisi to seize all money owed to Ecobank from the Central Bank of Nigeria and other commercial banks.
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Justice Gwandu held,
“The court refuses the application to stay the execution of the judgment and grants the Order Nisi as prayed.
“It is imperative to protect the integrity of this court’s judgment and ensure the judgment sum is secured pending the outcome of the appeal.”
Recall that in the aftermath of the lawsuit brought by 1,742 former employees of Ocean Bank against Ecobank for allegedly depriving them of their rightful compensation, the National Industrial Court, Lagos Division rendered a ruling directing Ecobank Nigeria Limited to reimburse the former employees for N1, 086,611,589.
Earlier event
Ecobank filed an appeal against the court's decision and an attempt to have the judgment's execution stayed because it was not satisfied with the court.
In his decision regarding the stay request and order nisi application, Justice Gwandu concluded that while the order nisi was granted as requested, the stay of execution was not.
In the bench ruling, the court also held,
“It, therefore, behoves this court to take steps to protect the integrity of its judgment and see that the Res is protected even when the appeal may or may not be pending.
“I hereby order the judgment debtor to pay the judgment sum into the account of the Chief Registrar of National Industrial Court of Nigeria pending the outcome of the appeal filed by the applicants.”
The claimants Babajide Bayode, Yemisi Adesote, Adeboyejo Oladimeji, Seun Aina, Yusuf Kadiri, Segun Alasan, Adetayo Familugba, and Lolade Olaribigbe, had through their counsel Mr Nwabu Okoye, filed the suit against Ecobank.
They sued for themselves and as representatives of 1,733 other ex-employees of Oceanic Bank now Ecobank Nigeria Limited.
Through their attorney, Nwabu Okoye, the claimants Babajide Bayode, Yemisi Adesote, Adeboyejo Oladimeji, Seun Aina, Yusuf Kadiri, Segun Alasan, Adetayo Familugba, and Lolade Olaribigbe filed the lawsuit against Ecobank.
They filed a lawsuit on behalf of 1,733 other former workers of Oceanic Bank, which is now Ecobank Nigeria Limited, as well as on their own behalf.
CBN revokes banking license
Legit.ng reported that the Central Bank of Nigeria (CBN) has revoked the license of Heritage Bank Plc with immediate effect.
The move, announced in a statement on Monday, June 3, 2024, is part of the CBN's ongoing efforts to maintain a stable and healthy financial system as authorised under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The statement signed by Hakama Sidi Ali, the Acting Director of Corporate Communications CBN, added that the revocation was executed after Heritage Bank breached Section 12 (1) of BOFIA 2020.
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Source: Legit.ng
