Employment 2025

NIGERIA Trends and Developments Contributed by: Adedapo Tunde-Olowu, Ugonna Ogbuagu, Adejumoke Ademola and Miebi Abere, ǼLEX

Currency of salary payments: contract terms override employer discretion Mr Salim Ally Buckus v Greenstone Auto Repairs Limited and Others (NICN/LA/08/2018, 11 March 2025) Where an employment contract specifies payment in a foreign currency, an employer cannot unilaterally switch to Nigerian naira, even during foreign exchange shortages. The NICN awarded compensation for exchange rate losses and upheld other contractual entitlements. Why this matters This is particularly relevant for expatriate contracts and international secondees. The ruling emphasises that Nigerian courts will enforce currency clauses not - withstanding regulatory or market constraints, height - ening the need for careful drafting and contingency planning. Next-of-kin versus legal heirs: administrative designation is not inheritance law Olalekan Anthony Akande v Associated Maritime Services Ltd and Others (NICN/PHC/76/2021, 11 February 2025) The court clarified that naming someone as “next-of- kin” in employment records does not override statu - tory inheritance rights. Legal heirs (typically spouses and children) take precedence in accessing terminal benefits. Why this matters HR teams in Nigeria should ensure that employee documentation aligns with estate planning laws. Relying solely on next-of-kin forms for benefits des - ignation can create disputes and delay payments, especially for multinational firms managing death-in- service benefits. Redundancy: lawful reason, wrongful execution Charles Omenukwa v EnerMech Nigeria Limited (NICN/LAG/344/2021, 11 July 2025) While the court accepted redundancy as a legitimate basis for termination, it still found the process wrong - ful for failure to pay contractual notice. The decision highlights that even valid restructuring reasons cannot excuse procedural breaches.

illustrate key principles that align Nigerian law with (or distinguish it from) international employment law standards. Accrued leave: a mandatory right that cannot be forfeited Sir Timothy Amobi Nwosu v Union Bank of Nigeria Plc (NICN/EN/54/2019, 20 June 2025) In a decision with significant implications for work - force management policies, the NICN held that leave entitlements are a mandatory health-preserving right, not a discretionary perk. Even if an employee does not formally apply for leave, systemic failure to grant it constitutes a breach of contract. The court reject - ed arguments that expired collective agreements or employee inaction extinguish the entitlement. Why this matters Employers with global operations in Nigeria must note that “use it or lose it” leave policies common in some jurisdictions may be unenforceable locally. The ruling underscores that Nigerian law imposes a proactive obligation on employers to ensure that staff actually take leave – a standard that could affect compliance audits, HR practices and cross-border policy harmo - nisation. Conversion of employment status: consent under duress is no consent Ms Busayo Sodipe v Minnesota Nigeria Limited (NICN/LA/117/2017, 28 March 2025) The court found fault with a restructuring exercise that converted permanent employees to contract status, finding that the claimant’s “agreement” was obtained under economic coercion. Permanent employment rights and accrued benefits cannot be unilaterally eroded, even in financial distress. Why this matters The judgment sends a clear warning that cost-saving measures and contractual changes in Nigeria will be closely scrutinised for genuine consent and procedur - al fairness. For multinationals, restructuring templates used elsewhere may need localisation to withstand Nigerian legal tests.

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