NIGERIA Trends and Developments Contributed by: Ituah Imhanze, Daze Nga, Damilola Raji and Ozioma Soludo, Kenna Partners
Trends and Developments in Labour Law Litigation for 2025 Labour law litigation in Nigeria has witnessed significant developments, particularly in how the courts address issues arising from the ter- mination of employment. The National Industrial Court of Nigeria (NICN), empowered by Section 254C of the Constitution of the Federal Republic of Nigeria (Third Alteration) Act, 2010, has con- sistently championed international labour stand- ards, introducing changes prioritising employee rights and fair treatment in the workplace. How- ever, the decisions of the NICN often conflict with the more conservative views of the superior courts, particularly the Court of Appeal and the Supreme Court, which tend to uphold traditional common law principles. This ongoing tension will shape the landscape of labour litigation in 2025, potentially impacting how employment disputes are resolved. The tension between the NICN and the superior courts The NICN’s approach to employment termina- tion has been increasingly influenced by inter- national best practices, especially the Interna- tional Labour Organisation (ILO) Termination of Employment Convention (No 158). The NICN has ruled that terminating employment without a valid reason constitutes unfair labour practice, in accordance with international standards. For instance, in cases like Ebere Onyekachi Aloy- sius v Diamond Bank Plc (2015) 58 NLLR 92, the NICN held that termination without justifiable cause violated international labour standards. However, the Court of Appeal has consistent- ly upheld the common law position, where an employer can terminate an employee for any reason or no reason at all, provided the employ- ment contract terms are followed. The Keystone Bank v Afolabi (2017) LPELR-42390 (CA) deci-
sion reinforced this position, emphasising that the contractual agreement between employer and employee precedes international labour standards, unless explicitly incorporated into the contract. The Supreme Court further strength- ened this conservative stance in the 2024 deci- sion in Dangote Cement Plc v Ager & Anor (2024) LPELR-61800 (SC), where the court reaffirmed that employers need not provide a reason for termination, provided that the contract terms are upheld. NICN’s recalibration Following the Court of Appeal’s lead, the NICN has started recalibrating its approach in some instances, aligning more with the traditional view. In Continental Reinsurance Plc v Kanma Maduka Okafor (2020) JELR 91426 (NICN), the NICN ruled that when a contract allows for termination without cause, an employer is not obliged to provide a reason, thus respecting the sanctity of the contract. This shift in philosophy signals that while the NICN may favour interna- tional standards, it increasingly acknowledges the superior courts’ emphasis on contractual obligations. Implications for future labour litigation As Nigeria approaches 2025, labour law litiga- tion will likely see ongoing disputes between these two judicial philosophies. With the NICN’s mandate to apply international best practices imposed by Section 254C of the Constitution of the Federal Republic of Nigeria (Third Altera- tion) Act, 2010, the NICN will continue pushing for greater employee protections. At the same time, the Court of Appeal and Supreme Court are maintaining a stricter adherence to the sanc- tity of contract. Employers will need to draft con- tracts carefully, specifying terms of termination to avoid conflicts. On the other hand, employ- ees may continue to challenge NICN termina-
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