Appeal Court Dismisses CBN and ABU Bid to Stop ₦2.5 Billion Payments to Illegally Sacked Workers

Published on 7 February 2026 at 10:57

Reported by: Oahimire Omone Precious | Edited by: Gabriel Osa

The Court of Appeal in Abuja has decisively dismissed separate appeals by the Central Bank of Nigeria (CBN) and Ahmadu Bello University (ABU), Zaria, aimed at halting the enforcement of a ₦2.5 billion judgment debt owed to 110 former university workers who were unlawfully dismissed in 1996. The appellate court’s ruling effectively clears the way for the long‑standing court‑ordered payments to be made to the affected employees. 

In unanimous decisions delivered on Friday, February 6, 2026, a three‑member panel led by Justice Okon Abang rejected the arguments put forward by both appellants. The CBN had challenged the legality of the workers using garnishee proceedings to enforce the judgment, while ABU contested the enforcement of the judgment itself. The court held that neither appeal had merit and upheld the earlier orders of the National Industrial Court in favour of the former workers. 

The case stems from a dispute dating back nearly three decades after 110 staff members were dismissed from ABU in 1996 during a period of administrative restructuring. The National Industrial Court in Abuja had earlier found the dismissals unlawful and ordered the university to reinstate the staff and pay their entitlements, calculated at more than ₦2.5 billion. Non‑compliance with that judgment prompted the workers to initiate garnishee proceedings against the CBN in 2018, where the funds were held in custody on behalf of ABU. 

In its defence, the CBN maintained that garnishee enforcement was inappropriate and that payment should be subject to consent from the Attorney‑General of the Federation and Minister of Justice. The appellate court dismissed this contention, ruling that where the Attorney‑General was already a party to the substantive suit, separate consent was not a legal precondition for garnishee enforcement. 

Justice Abang criticised the legal approaches taken by both appellants, particularly admonishing the CBN for expending public funds on litigation that attempted to frustrate the workers’ access to funds rightfully due to them. The court held that it was not within the CBN’s role to act as an advocate opposing compliance with a valid court order, especially where the judgment debt had been secured and the funds were already held in its custody. 

In addition to dismissing the appeals, the Court of Appeal awarded ₦5 million in litigation costs each against the CBN and ABU in favour of the former workers. The monetary award is intended to compensate the workers for prolonged litigation and the delay in receiving their entitled benefits.

Legal analysts noted that the decision reinforces the binding nature of court judgments and underscores that public institutions must comply promptly with judicial orders, especially where workers’ rights and entitlements are concerned. The ruling signals the end of a protracted legal struggle for the 110 former workers, whose entitlements had remained unpaid for decades despite earlier court orders. 

With the appeals dismissed, the CBN has been ordered to immediately release the ₦2.5 billion standing to ABU’s credit for payment to the former staff without further delay. Failure to comply could attract sanctions or disciplinary action against the principal officers of the bank, as indicated by the appellate decision. 

The outcome of this case is seen as a vindication for labour rights enforcement in Nigeria and a reminder of the judiciary’s role in safeguarding the rule of law, particularly in long‑running employment disputes involving public institutions.

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