Appeal Court Dismisses CBN, ABU Bid to Stop ₦2.5bn Payment to 110 Illegally Sacked Workers

The Court of Appeal sitting in Abuja has dismissed fresh attempts by the Central Bank of Nigeria (CBN) and Ahmadu Bello University (ABU), Zaria, to halt the payment of a ₦2.5 billion judgment debt owed to 110 former university workers unlawfully dismissed in 1996.

In two separate unanimous judgments delivered by a three-member panel, the appellate court ordered the CBN to immediately release the ₦2.5 billion to the affected workers without further delay.

Delivering the lead judgments, Justice Okon Abang warned that severe sanctions would be imposed on officials of the apex bank should it continue to frustrate the payment of funds already in its custody since 2018 for the settlement of the judgment debt.

Justice Abang dismissed the CBN’s argument that the workers—whose dismissal was declared unlawful and whose reinstatement was ordered by the National Industrial Court—were not entitled to institute garnishee proceedings against the bank to recover their entitlements.

The court also rejected CBN’s claim that the consent of the Attorney General of the Federation and Minister of Justice must be obtained before the funds could be released.

CBN and ABU had separately appealed against the enforcement of the Industrial Court’s judgment, which ordered ABU to pay the workers’ entitlements after finding that they were illegally laid off by the university’s then Sole Administrator, General Mamman Kontagora, in 1996. Both appellants also challenged the garnishee proceedings initiated by the workers.

The Court of Appeal dismissed the two appeals, describing them as unmeritorious.

Justice Rakiya Haastrup of the National Industrial Court had, on January 27, 2022, issued a garnishee order absolute directing the CBN to pay the judgment sum from funds deposited by ABU.

Upholding the order, Justice Abang held that the workers acted lawfully in initiating garnishee proceedings against the CBN to enforce payment of their entitlements.

The appellate court strongly criticised the CBN for deploying public funds to engage lawyers in what it described as an attempt to frustrate the execution of a valid court judgment.

According to the court, CBN’s conduct was reckless and reprehensible, particularly as ABU had already deposited the money with the bank for the purpose of settling the judgment debt.

“In this matter, it is not the duty of the CBN to play the role of an advocate but to implement the judgment of the court in the absence of any contrary order,” Justice Abang said.

“It is unethical for the lawyer to the CBN to have supported the bank in frustrating the judgment of the Industrial Court. The unfortunate actions of the CBN prolonged the sufferings and hardships of the workers.

“There was no lawful basis for the CBN to have filed this appeal, as no claim was made against the bank. The workers have been suffering for years and deserve the fruits of their victory,” he added.

The court further questioned why the CBN would seek to vacate an order not made against it while holding the workers’ funds for several years, stressing that “there must be an end to this situation.”

In addition to ordering the immediate release of the ₦2.5 billion judgment sum, the Court of Appeal awarded ₦5 million in costs against the CBN and another ₦5 million against ABU, payable to the workers.

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2026-02-07

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