July 29, 2025

Court Orders Ecobank to Pay N10m Damages for Unlawful Dismissal

The National Industrial Court in Benin has ruled that the dismissal of a former Ecobank staff member, Mr. John, was unlawful and violated his right to fair hearing, awarding him over N10 million in compensation.

The judgment, delivered by Hon. Justice Adunola Adewemimo, stated that Ecobank’s actions breached both Mr. John’s employment contract and his constitutional rights under Section 36 of the 1999 Constitution of Nigeria.

In her ruling, Justice Adewemimo converted the bank’s dismissal letter into a letter of termination and ordered the payment of N397,980.77 as salary in lieu of notice. She also awarded N10 million as general damages and N250,000 as the cost of litigation. The total compensation is to be paid within 30 days, failing which it will attract 10 percent interest annually.

Mr. John told the court that he had reported a fraudulent transaction while on duty and later appeared before a disciplinary committee. Shortly afterwards, he survived an assassination attempt and was hospitalised. While still recovering from gunshot wounds, he was dismissed by the bank.

He argued that Ecobank never issued him a formal query, nor was he given a fair opportunity to respond to the allegations levelled against him. He claimed that the dismissal, based on false accusations, damaged his reputation and made it difficult for him to find another job in the financial sector.

Ecobank, in its defence, accused Mr. John of reporting the fraud to conceal his own involvement. The bank also contested the legitimacy of his injuries and insisted that due process was followed.

Justice Adewemimo ruled that Ecobank failed to justify the dismissal and violated the principles of fair hearing. She noted that there was no formal report from the internal investigating committee that proved Mr. John was an accused party rather than a witness.

While the court upheld the former banker’s right to compensation, it rejected his request to be absolved of an outstanding personal loan taken during his employment. Justice Adewemimo ruled that his claim lacked merit, even though the loan was insured and premiums were deducted.

The court concluded that Ecobank’s actions were in breach of both labour law and the bank’s internal HR policies. All awarded sums must be paid within 30 days, or the judgment debt will accrue interest at 10 percent annually.

 

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