Court orders Cameroonian Alain Nkontchou-led Ecobank to pay over $679,000 to former Oceanic bank employees

Oluwatosin Racheal Alabi -

Key Points:

  • The National Industrial Court in Lagos ordered Ecobank to pay $679,132.24 to 1,742 former Oceanic Bank employees for unpaid gratuities and savings.
  • Ecobank’s request for a stay of execution was denied, but an Order Nisi was granted to attach Ecobank’s funds pending the appeal’s outcome.
  • The court emphasized protecting the integrity of its judgment and mandated the payment into the chief registrar’s account while the appeal is resolved.

The National Industrial Court in Lagos has ordered Ecobank Nigeria Limited, led by Cameroonian executive Alain Nkontchou, to pay N1,086,611,589.11 (approximately $681,632) into the account of the chief registrar of the court.

This payment is pending the hearing and determination of an appeal filed by Ecobank against the court’s previous judgment.

Background of the case

On July 16, 2024, Justice R.H. Gwandu ruled on an appeal by Ecobank. The bank sought to overturn a judgment that mandated it to pay 1,742 former Oceanic Bank employees for unpaid gratuities and staff savings.

The bank had applied for a stay of execution, but the court denied this application. Instead, the court granted the ex-employees’ application for an Order Nisi, allowing the attachment of all monies owed to Ecobank by the Central Bank of Nigeria and other commercial banks until the appeal’s outcome.

Justice Gwandu emphasized the need to protect the court’s judgment and ensure the judgment sum is secured during the appeal process.

“The court refuses the application to stay the execution of the judgment and grants the Order Nisi as prayed,” he stated.

This ruling follows a lawsuit filed by 1,742 former Oceanic Bank employees who were denied their entitlements by Ecobank. Previously, the National Industrial Court ordered Ecobank to pay the sum of N1,086,611,589.11 to these ex-workers.

Dissatisfied with the court’s decision, Ecobank filed an appeal and requested a stay of execution. However, Justice Gwandu denied the stay and upheld the Order Nisi. “Order Nisi is granted as prayed, stay of execution is denied,” he ruled.

The claimants, represented by their counsel Nwabu Okoye, include Babajide Bayode, Yemisi Adesote, Adeboyejo Oladimeji, Seun Aina, Yusuf Kadiri, Segun Alasan, Adetayo Familugba, and Lolade Olaribigbe. They filed the suit on behalf of themselves and 1,733 other ex-employees of Oceanic Bank, now Ecobank Nigeria Limited.

Justice Gwandu also underscored the court’s duty to protect the integrity of its judgment. He ordered Ecobank to pay the judgment sum into the account of the chief registrar of the National Industrial Court of Nigeria while the appeal is pending.

This ruling represents a significant victory for the former Oceanic Bank employees in their quest for justice and fair compensation. The outcome of Ecobank’s appeal will be closely watched, as it will determine whether the judgment sum remains secured for the ex-workers.

Leading regional banking group

Ecobank is the leading independent regional banking group in West and Central Africa, serving wholesale and retail customers in 36 African countries. The pan-African banking conglomerate is one of the largest in terms of countries served.

Cameroonian banker Alain Nkontchou, Chairman of Ecobank, maintains a 2.18-percent beneficial stake (equivalent to 400,916,488 ordinary shares) in the regional banking group.

Under Nkontchou’s leadership, total comprehensive income surged significantly, rising from N7.06 billion ($15.54 million) to N448.72 billion ($123.76 million). This follows a strong 2023 performance where total comprehensive income rose from $61.21 million to $226.99 million.