⚖️ Investor Watch: Labour Judgment Against Fidelity Bank-Orders Over ₦162 Million Payout to Former Staff in Retirement Benefits
In a major victory for workers’ rights, the National Industrial Court in Lagos has ordered Fidelity Bank Plc to pay more than ₦162 million in outstanding retirement benefits to a group of former employees, delivering a scathing rebuke of the bank’s use of third-party employment schemes to dodge labour obligations.
Background of the Case
The claimants — Ann Nwabulu, Chidinma Fred Oka, Doris Alfred-Okhilua, Dayo Johnson-Olayemi, Julius Ubah, Obiageli Mbadiwe, Obasi Esobe, Sophia Milton, Yemisi Femifalade, Abiamuwe Sylvester, and Nnenna Ekwueme — were represented by Chief Mike Ozekhome, SAN, a prominent human rights and labour lawyer.
They approached the court seeking declarations that:
• Fidelity Bank’s refusal to pay their retirement benefits violated their employment contracts and labour law.
• The bank’s retroactive policy changes to deny them entitlements were unlawful.
• The bank should be ordered to pay all sums owed immediately.
Key Issues Addressed in Court
Justice R.H. Gwandu, who presided over the case, ruled resoundingly in favour of the employees, addressing two central issues:
1. Jurisdiction over the 10th claimant’s case (who had joined through Fidelity’s merger with FSB International Bank and Manny Bank).
2. Whether the claimants were entitled to the retirement benefits they demanded.
On jurisdiction, the court rejected Fidelity’s technical arguments that the 10th claimant was only “seconded” and not directly employed. Justice Gwandu emphasized that employment cannot be denied where facts — such as service letters and awards — clearly show continuous work for the bank.
“It would be inequitable and unjust to hold that no employment relationship existed. The defendant cannot use technicalities to avoid its obligations when the facts are clear and uncontroverted,” the judge ruled.
Verdict: Fidelity’s Labour Tactics Condemned
The court condemned Fidelity Bank’s strategy of hiring staff through third-party entities, such as Fidelity Union Securities, solely to avoid responsibility for pensions and retirement obligations.
Justice Gwandu called this a “practice the court has consistently frowned upon,” especially when the bank itself issued letters of service recognition and long-service awards to those same employees.
Additionally, the bank’s claim that the employees didn’t meet the required 15 years of unbroken service under its internal policy was dismissed by the court as baseless.
Why This Matters
✅ The judgment reinforces the protection of workers’ rights against corporate loopholes.
✅ It sends a clear message: outsourcing labour does not excuse employers from legal and moral obligations.
✅ It provides relief to long-serving staff who were unjustly denied their retirement entitlements.
✅ It challenges a common tactic used by many Nigerian firms to sidestep employment responsibilities.
Bottom Line:
Fidelity Bank has been ordered to do right by its former employees — with over ₦162 million in long-overdue benefits to be paid. This landmark ruling is not just a win for the 11 claimants but a powerful precedent for contract workers across the country.
In a major victory for workers’ rights, the National Industrial Court in Lagos has ordered Fidelity Bank Plc to pay more than ₦162 million in outstanding retirement benefits to a group of former employees, delivering a scathing rebuke of the bank’s use of third-party employment schemes to dodge labour obligations.
Background of the Case
The claimants — Ann Nwabulu, Chidinma Fred Oka, Doris Alfred-Okhilua, Dayo Johnson-Olayemi, Julius Ubah, Obiageli Mbadiwe, Obasi Esobe, Sophia Milton, Yemisi Femifalade, Abiamuwe Sylvester, and Nnenna Ekwueme — were represented by Chief Mike Ozekhome, SAN, a prominent human rights and labour lawyer.
They approached the court seeking declarations that:
• Fidelity Bank’s refusal to pay their retirement benefits violated their employment contracts and labour law.
• The bank’s retroactive policy changes to deny them entitlements were unlawful.
• The bank should be ordered to pay all sums owed immediately.
Key Issues Addressed in Court
Justice R.H. Gwandu, who presided over the case, ruled resoundingly in favour of the employees, addressing two central issues:
1. Jurisdiction over the 10th claimant’s case (who had joined through Fidelity’s merger with FSB International Bank and Manny Bank).
2. Whether the claimants were entitled to the retirement benefits they demanded.
On jurisdiction, the court rejected Fidelity’s technical arguments that the 10th claimant was only “seconded” and not directly employed. Justice Gwandu emphasized that employment cannot be denied where facts — such as service letters and awards — clearly show continuous work for the bank.
“It would be inequitable and unjust to hold that no employment relationship existed. The defendant cannot use technicalities to avoid its obligations when the facts are clear and uncontroverted,” the judge ruled.
Verdict: Fidelity’s Labour Tactics Condemned
The court condemned Fidelity Bank’s strategy of hiring staff through third-party entities, such as Fidelity Union Securities, solely to avoid responsibility for pensions and retirement obligations.
Justice Gwandu called this a “practice the court has consistently frowned upon,” especially when the bank itself issued letters of service recognition and long-service awards to those same employees.
Additionally, the bank’s claim that the employees didn’t meet the required 15 years of unbroken service under its internal policy was dismissed by the court as baseless.
Why This Matters
✅ The judgment reinforces the protection of workers’ rights against corporate loopholes.
✅ It sends a clear message: outsourcing labour does not excuse employers from legal and moral obligations.
✅ It provides relief to long-serving staff who were unjustly denied their retirement entitlements.
✅ It challenges a common tactic used by many Nigerian firms to sidestep employment responsibilities.
Bottom Line:
Fidelity Bank has been ordered to do right by its former employees — with over ₦162 million in long-overdue benefits to be paid. This landmark ruling is not just a win for the 11 claimants but a powerful precedent for contract workers across the country.