Court Awards Payment of N1.1bn to Ex-Oceanic Bank Employees 

Wale Igbintade

Justice Rabiu Gwandu of the National Industrial Court, Lagos Division, has 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 number NIC/LA /231/2012 filed by 1,742 ex- employees  of the defunct Oceanic Bank, which merged with Ecobank  Bank Limited sometimes in 2012.

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 outstanding amount 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 redundance benefits paid to the ex-staff of Oceanic Bank.

The bank also  counter- claim 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 utilised 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 was contributions to the SSITF or show evidence that the claimants  were paid the sum they claim.

She said: “I therefore hold that the claimants have 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 contributions of 1,742 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.

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, and the intervention of ASSBIFI had the consent of the ex-staff.

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