The National Industrial Court sitting in Lagos has ordered the Nigeria Inter-Bank Settlement System (NIBSS) to pay its former employee, Mr. Kayode Kalejaiye , ₦8.2 million for unlawfully withholding his salary and benefits following the termination of his employment.
Delivering judgment, Justice Joyce Damachi held that NIBSS acted improperly by deducting Mr. Kayode’s salary in lieu of notice, compulsory staff savings, and his 2019 profit share to offset a purported debt. The court described the company’s actions as “wrongful, unlawful, and oppressive.”
In addition to the ₦8.2 million, the court awarded ₦500,000 in costs and directed that all payments be made within 30 days.
According to court documents, Mr. Kayode Kalejaiye joined NIBSS in 2014 but was abruptly informed via phone and email on 2 August 2019 that his services were no longer required. He told the court that during his employment, part of his salary had been paid upfront to cover housing, furniture, and estacode allowances. However, upon his dismissal, the company claimed he owed ₦18.4 million in “unearned upfront” payments, which was later reduced to ₦7.5 million after he returned his official car.
Mr. Kayode Kalejaiye further alleged that NIBSS withheld ₦8.2 million from his terminal benefits and still accused him of owing ₦7.1 million, leaving him financially stranded and under threat of legal action.
In its defence, NIBSS maintained that Mr. Kayode Kalejaiye’s employment was properly terminated in accordance with company policy and due process. It argued that he was aware of his obligation to refund upfront allowances if his employment ended before the completion of the financial year, asserting that such payments were discretionary and refundable upon exit—voluntary or otherwise.
The company also filed a counterclaim seeking ₦10.6 million as the outstanding balance on the upfront payments and ₦5 million as solicitors’ fees.
However, counsel to Mr. Kayode Kalejaiye contended that since the company had voluntarily paid the allowances in January 2019 and terminated his employment just seven months later, it was unreasonable to demand repayment of funds already spent on rent and furniture.
In her ruling, Justice Damachi faulted NIBSS for failing to provide clear contractual terms for repayment or any written agreement making the upfront payments refundable. She observed that “there was no consensus ad idem between the parties regarding the refund of housing, furniture, and estacode allowances upon premature exit.”
The judge declared that Mr. Kayode Kalejaiye was not indebted to NIBSS and criticised the company for resorting to self-help.
“It was wrong, unlawful, and oppressive for NIBSS to deduct the claimant’s entitlements upon termination without following proper legal procedures,” Justice Damachi ruled.
Accordingly, the court ordered NIBSS to pay Mr.Kayode Kalejaiye ₦8.2 million as restitution for the wrongfully seized entitlements and ₦500,000 as costs, with payment to be made within 30 days.
