The Lagos division of the National Industrial Court of Nigeria (NICN) has delivered a landmark judgment in favour of Mr. Biekpi Uwe Akan, a former employee of the Nigerian Security Printing and Minting Plc (NSPM), declaring his dismissal unlawful.
Apart from declaring Akan’s dismissal unlawful, the court presided over by Justice I. J. Essien, also awarded substantial damages and retirement benefits totaling over N95 million, as compensation.
The judge in a judgment delivered on March 30, 2026, in the suit marked NICN/LA/292/2024, ruled that Mr. Biekpi Uwe Akan’s disengagement from NSPM was wrongful, unconstitutional, and contrary to both Nigerian law and international labour standards.
Mr. Akan had approached the court in October 2024, challenging his termination in July 2022 after over 20 years of service. He had argued that the company dismissed him at age 57, just a few years before his expected retirement, thereby depriving him of his earned benefits and pension rights.
A key issue in the case was whether NSPM qualifies as part of the public service, given that the Central Bank of Nigeria holds controlling shares in the company.
The court agreed with the claimant, declaring that NSPM is indeed part of the public service, thereby granting its employees the protections associated with public sector employment, including security of tenure.
Justice Essien held that the reason given for Mr. Akan’s dismissal, that his “services were no longer required” was insufficient, especially considering his long years of service and proximity to retirement.
The court found that under such circumstances, the company ought to have applied compulsory retirement procedures rather than outright termination.
“The claimant had put in 20 years of service and was entitled to pensionable benefits,” the court noted, adding that the employer’s action deprived him of his legitimate expectation of continued earnings and retirement entitlements.
In a significant ruling, the court converted Mr. Akan’s dismissal into compulsory retirement, thereby awarded him full retirement benefits, including an exit incentive package equivalent to three years’ total emoluments.
The court also criticized NSPM for failing to issue the claimant an exit clearance letter, which prevented him from accessing his pension savings. Justice Essien described this as “cruel, unconscionable and reprehensible,” emphasizing that an employee’s right to pension cannot be denied regardless of the circumstances of disengagement.
Consequently, the court ordered NSPM to issue the necessary clearance within seven days.
In terms of financial awards, the court granted Mr. Akan over ₦90.5 million in total compensation. This includes ₦27.2 million for lost earnings, ₦23.3 million as retirement benefits, and ₦40 million in exemplary damages for the company’s conduct.
Additionally, the defendant was ordered to remit outstanding pension contributions totaling ₦292,234.86 and to pay ₦5 million as the cost of litigation.
Justice Essien ordered NSPM to comply with all orders within seven days, with a 20 percent annual interest applicable on the judgment sum until full payment is made.
The court however dismissed NSPM’s counterclaim seeking a refund of alleged unearned allowances amounting to ₦1.24 million, ruling that there was insufficient evidence to support the claim.
Justice Essien stressed that courts must avoid speculation when interpreting conflicting employment documents and held that any ambiguity must be resolved in favour of the employee, especially where financial rights are at stake.
