Court Denies Request to Halt Execution of ₦1.08 Billion Judgment Debt, Orders Ecobank to Deposit the Amount Pending Appeal

Justice Rabiu Gwandu of the National Industrial Court, Lagos Division, has rejected an application praying the court to stay execution of N1, 086,611,589.11 judgement awarded in favour of former employees of the defunct Oceanic Bank International, as payment of their gratuities, and severance allowances.

The court in its ruling refused the application to stay execution of the judgement, and ordered that the judgement sum be paid into the account of the Chief Registrar of the court pending the hearing and determination of the appeal.

It would be recalled that the court had awarded the sum of N1, 086,611,589.11 in favour of former employees of the defunct Oceanic Bank International, as payment of their gratuities, and severance allowances.

The court gave the order while delivering judgement in suit numbered: NIC/LA /231/2012 filed by 1,742 ex- employees of defunct Oceanic Bank which merged with Ecobank Bank Limited sometimes in 2012.

Dissatisfied, Ecobank in its Notice of Appeal urged the court to stay execution of the judgement pending the hearing and final determination of it appeal.

The ex-employees, on the other hand, brought an application for the order nisi for attachment of sums to the credit of the bank with the Central Bank of Nigeria (CBN) and with commercial banks to satisfy the judgement sum, for satisfaction of the judgement debt.

Ruling on both applications, Justice Gwandu held that: “It therefore behooves on this court to take steps to protect the integrity of its judgement and see that the Res is protected even when the appeal may or may not be pending. I hereby order the judgement debtor to pay the judgement sum into the account of the Chief Registrar of National Industrial Court of Nigeria pending the outcome of Appeal filed by the Applicants.”

The claimants, Babajide Bayode, Yemisi Adesote, Adeboyejo Oladimeji, Seun Aina, Yusuf Kadiri, Segun Alasan, Adetayo Familugba, and Lolade Olaribigbe, who sued for themselves and as representatives of 1,733 other ex-employees of Oceanic Bank, had through their lawyer, Nwabu Okoye, sought an order directing Ecobank to pay the outstanding sum of N1,146,470,393,.62 being the sum total of their savings in the Staff Savings Investment Trust Fund (SSITF) scheme

The claimants in their statement of claim said the amount outstanding as their contributions to the SSITF scheme which the defendant ( Ecobank) has refused to pay till date stands at N926,901,065,.60 .

Claimants also asked the court for an order directing Ecobank to pay the sum of N159,710,523.51 being the total sum due as gratuities to 48 of the claimants and another sum of N59, 858,804,.51 being the short payments of severance or redundancy paid by the defendant to 74 of them.

However, Ecobank, through its lawyer, S.C Arubike, in its statement of defence/counter-claim, demanded the sum of N967,529,765.38 being the excess of severance and or redundancy benefits paid to the ex-staff of Oceanic Bank.

The bank also counter-claimed for the sum of N225,724,076,.78 being the excess gratuities and entitlements paid to the representative members by Ecobank Bank, another sum of N1,541,491,955.03 being the sum outstanding and payable as at October 30, 2014, on credit facility granted to the representative members of the ex-staff.

The defendant further demanded the sum of N41,640,000,000 being the amount due and outstanding as at December 31, 2010, on the term loan of N25,054,481,701.00 granted by Oceanic Bank (now Ecobank) to the former employees through the Board of Trustee of the Trust Fund which facility was accepted and fully utilized by the claimants for the purchase of shares of blue-chip companies and which sum the ex-staff ( claimants) have failed, neglected or refused to repay till date despite repeated demands.

In her judgement delivered on May 15, 2024, Justice Gwandu dismissed the defence and counter-claim of Ecobank Bank on the ground that the bank failed to put credible evidence before the court to support its counter-claim.

The court held that upon the consummation of the merger, Ecobank has fully acquired all the assets and liabilities of Oceanic Bank and cannot repudiate or push some of the liabilities on its employees, moreover, when it was the bank that was in control of the SSITF scheme.

The trial Judge further held that Ecobank cannot deny that there were contributions to the SSITF or show evidence that the claimants were paid the sum they claim.

“I therefore hold that the claimants ave proved their case and are entitled to the payment of the sum of N926,901,065.60 being the sum total in the account of the Staff Savings Investment Trust Fund being the contributions of 1742 ex- employees of Oceanic Bank made up of those transferred to Ecobank upon the merger and whose contract of employment were determined on February 15, 2012, and those whose employment otherwise were determined before or upon the merger,” she stated.

On the issue of unpaid gratuities, Justice Gwandu said: “I therefore hold that the defendant are liable to the claimants in the sum of N159,710,523.51 being the total sum due on the basis of years of service of the employees.”

The judge, however, refused the plaintiffs’ claim of N59,858,804.51 being the total sum of short payment of severance or redundancy package paid by Ecobank to 74 of the claimants.

Justice Gwandu said it would be unfair for the court to hold Ecobank responsible for any lapses that may have occurred under the agreement brokered by ASSBIFI since some of the ex-staff benefitted under the agreement, and are happy under the same agreement moreover the intervention of ASSBIFI had the consent of the ex-staff.

Justice Gwandu granted 10 percent interest on the judgement sum from 30 days after the judgement was delivered till it is fully liquidated.