The National Industrial Court of Nigeria (NICN), Lagos Division, has ruled that the mass dismissal of staff by United Bank for Africa Plc (UBA) was wrongful, ordering the bank to settle affected workers’ outstanding personal loans through the insurance policies attached to the loans.
The ruling was delivered on November 13, 2025, by Justice Ikechi Gerald Nweneka, in a suit filed by several former UBA employees who challenged the circumstances surrounding their exit from the bank.
Court Declares UBA Staff Exit a Constructive Dismissal
In its judgment, the court held that the affected employees were constructively dismissed, meaning they were forced out of their jobs due to actions taken by the employer rather than voluntarily resigning.
Justice Nweneka ruled that the manner in which UBA disengaged the workers amounted to wrongful termination under Nigerian labour law.
Loan Repayment to Be Covered by Insurance
While the court rejected claims that the personal loans granted to the employees were exploitative or unconscionable, it ruled that since the workers lost their jobs involuntarily, UBA must activate the insurance cover linked to the loans to clear the outstanding balances.
The loans in question were taken between August and December 2019, prior to the employees’ exit from the bank.
Other Claims Dismissed
The court, however, dismissed several other reliefs sought by the claimants, including:
- Claims for salary arrears after dismissal
- A demand for ₦400 million in damages for breach of contract
- Allegations of failure to remit National Housing Fund (NHF) deductions
- A ₦10 million defamation claim against the bank
The court ruled that these claims were either not proven or lacked sufficient legal backing.
UBA Ordered to Issue Employment References
In addition to the insurance repayment order, the court directed UBA to provide employment references to the affected former staff, enabling them to seek new job opportunities.
UBA was also ordered to pay ₦750,000 as cost of the suit.
Why This Ruling Matters
The judgment is seen as a significant development in Nigeria’s labour and banking sector, reinforcing workers’ rights and clarifying employers’ obligations in cases of mass disengagement.
Legal experts say the ruling could influence how banks and large corporations handle staff exits, particularly where employee loans and insurance policies are involved.
