
IN THE NATIONAL INDUSTRIAL COURT
OF NIGERIA
IN THE
ABUJA JUDICIAL DIVISION
HOLDEN
AT ABUJA
BEFORE
HIS LORDSHIP HONOURABLE JUSTICE O. Y. ANUWE
Dated: 26th November
2025 SUIT NO: NICN/ABJ/191/2020
Between:
1.
Mrs. Eze Veronica Chima
2.
Mrs. Herbert Lilian Ekwutosi
(Both suing for themselves and
as the Claimants
Administrators of the Estate of
the late
Mr. Wilfred Chukwuemeka Eze)
And
1.
Nigerian National Petroleum Corporation (NNPC)
2.
Head of Service of the Federation Defendants
3.
The Federal Civil Service Commission
Representation:
Benjamin Ogbaini, with him,
John Ochoche for the Claimants
Abdulrazak Abdulganiyu,
with him, Progress A. Imoudu for the 1st Defendant
JUDGMENT
The
claimants instituted this suit vide a Complaint filed on 3rd August
2020. With the leave of the Court, the claimants amended the statement of facts
a number of times, the last one being the amended statement of facts filed on
10th March 2023. The reliefs sought by the claimants in the amended
statement of facts are as follows:
1. A declaration that
the late Mr. Wilfred Chukwuemeka Eze was duly appointed and
retired as Group Executive Director (Finance & Accounts) of the
Defendant (Nigerian National Petroleum Corporation).
2. A declaration
that the late Mr. Wilfred Chukwuemeka Eze's pensionable years
of service in the Federal Civil Service was merged, by virtue of which he
became pensionable as a staff of the Defendant upon retiring
from the services of the said Defendant.
3. A declaration
that the years of service of the late Mr. Wilfred Chukwuemeka
Eze's pensionable years of service in the Federal Civil
Service having been merged, and having retired in the NNPC, he is entitled to be paid
his retirement and other benefits due to every staff of his status and
standing, retiring and retired from the Defendant, and payable by
the said Defendant.
4. An
order directing the 1st Defendant to immediately pay to the Claimants, the
retirement and all other benefits payable and due to its retiring, retired and
deceased employees of the status and standing of the late Mr. Wilfred
Chukwuemeka Eze who was a Group Executive Director until his retirement, having
effectively retired and pensionable from the services of the Defendant.
5. An order directing
the Defendant to pay to the Claimants, all the benefits due and payable to the
late Mr. Wilfred Chukwuemeka Eze a deceased pensionable and retired staff of
the Corporation, to the late Mr. Wilfred Chukwuemeka Eze.
6. An
order mandating the 1st Defendant to pay the sum of N300,000,000 to the Claimants for the humiliation,
psychological trauma, failed health, prolonged illness due to lack of funds for
treatment and consequent death of their Principal (Mr. Wilfred Chukwuemeka Eze)
arising from the failure, refusal and neglect of the said 1st Defendant
to pay him his entitlements and benefits upon his being compulsorily retired.
7. An order mandating
the 1st Defendant to pay the sum of N400,000,000
to the Claimants as compensation for the neglect, pain and suffering Mr. Wifred
Chukwuemeka Eze was subjected to by the failure, neglect and refusal of the 1st
Defendant to pay Mr. Wilfred Chukwuemeka Eze his benefits and entitlements as
at and when due.
8. An
order mandating the 1st Defendant to pay the sum of N400,000,000 to the Claimants as general
damages for their failure, refusal, delay and neglect to pay Mr. Wilfred
Chukwuemeka Eze his benefits and entitlements upon being compulsorily retired.
9. An order mandating
the 1st Defendant to pay the sum of N400,000,000 to the Claimants as compensation for the loss of their
breadwinner, husband and father due to the 1st Defendant's neglect,
refusal and or failure to pay Mr. Wilfred Chukwuemeka Eze his benefits and
entitlements upon being compulsorily retired.
10. An order
mandating the Defendants to pay the sum of N50,000,000
to the Claimants as costs.
The 1st defendant filed an
amended statement of defence on 12th December 2023 while the 2nd
defendant filed a statement of defence on 2nd February 2022. The 3rd
defendant did not file any statement of defence in the suit.
This suit was originally assigned to Hon.
Justice O. O. Oyewumi, who is now a Justice of the Court of Appeal. In the
proceedings of 8th March 2023, learned counsels for the parties
agreed that the matter be argued on record pursuant to Order 38 Rule 33 of the
Rules of this court. Based on the consent of the parties, the Court ordered
that the suit be argued on record, and directed counsels to file their final
written addresses. Hon. Justice O. O. Oyewumi was subsequently elevated to the
Court of Appeal. That was when the suit was re-assigned to me. When the suit
came before me on 25th February 2025, counsels for the parties
informed the court of the agreement of parties to have the suit tried on record.
I also granted the request of parties. The final written addresses of the
parties were filed subsequently. The Claimants filed
their final written address on 9th April 2025 while the 1st
Defendant filed its final written address on 16th May 2025. The Claimants
filed a reply on points of law on 30th June 2025. The 2nd
and 3rd Defendants did not file final written addresses. The Claimants and the 1st Defendant
adopted their respective Final Written addresses on 3rd October
2025.
Order 38 Rule 33(1)
of the Rules of this Court permits parties to, upon the close of pleadings,
elect or agree for a trial on record. The procedure in trial on record is that the
parties rely only on the pleadings and exhibits frontloaded for the
determination of the suit, and thereby dispense with the need for oral
testimony and/or cross-examination of witnesses. In view of the procedure in
Order 38 Rule 33(1), this suit is to be determined on the basis of the
pleadings of the parties and the documents frontloaded with the pleadings.
Thus, to determine this suit, the starting point is to examine the facts
pleaded by the parties.
FACTS PLEADED BY THE
CLAIMANTS
In the 3rd amended statement of facts of the
claimants, they averred as follows: Mr. Wilfred Chukwuemeka Eze, now
deceased, was a staff of the 1st defendant. He held the position of
Group Executive Director, Finance & Accounts until he was compulsorily
retired from the employment of the 1st defendant on 7th
August 1995. Mr. Wilfred Chukwuemeka Eze died on 19th April 2019. The 1st
Claimant is the only wife and widow of Mr. Wilfred Chukwuemeka Eze while the 2nd
claimant is the daughter of Mr. Wilfred Chukwuemeka Eze. Mr. Wilfred
Chukwuemeka Eze died intestate and following his death, the claimants applied
for and were issued Letters of Administration, dated 25th June 2020,
over the Estate of Mr. Wilfred Chukwuemeka Eze. Both claimants are the
Administrators of the Estate of the Mr. Wilfred
Chukwuemeka Eze.
Mr.
Wilfred Chukwuemeka Eze was appointed into the service of the 1st
defendant vide a letter dated 8th October 1993 as the Executive
Director (Finance & Accounts). By
another letter dated 11th October 1993, the 1st Defendant
conveyed the approval of the Secretary of Petroleum & Mineral Resources for
the appointment of Mr. Wilfred Chukwuemeka Eze as the Acting Group Executive
Director, Finance & Accounts in the 1st defendant. The then
Head of State and Commander-in-Chief of the Armed Forces of the Federal
Republic of Nigeria, Chief Ernest Shonekan, thereafter approved the appointment
of Mr. Wilfred Chukwuemeka Eze as the Group Executive Director, Finance
& Accounts of the 1st defendant vide a press release dated 2nd
November 1993 issued by the Office of the Secretary, Ministry of Petroleum and
Mineral Resources. Following the approval of the appointment of Mr. Wilfred
Chukwuemeka Eze, the Defendant issue him a Letter of Appointment dated
3rd November 1993 on GSS16 and the appointment was made effective
from 2nd November 1993.
In a
letter dated 26th April 1995 and titled "Desecondment", Mr.
Wilfred Chukwuemeka Eze was purportedly deseconded back to the Federal
Ministry of Finance. The letter of desecondment prompted the Ministry of Finance
to draw the attention of the 1st Defendant, in a letter dated 23rd
May 1995, to the fact that Mr. Wilfred Chukwuemeka Eze was not
seconded to the 1st Defendant but was appointed the substantive
Group
Executive
Director (Finance & Accounts) of the 1st Defendant by the Head
of
State, Chief
Ernest Shonekan. The Ministry of Finance further
advised the 1st Defendant to withdraw the letter of
desecondment and recall Mr. Wilfred Chukwuemeka Eze to resume his normal work
with the 1st Defendant. The Office of the Secretary to the
Government of the Federation, General Services, also wrote a letter dated
14th June 1995 to the Group Managing Director of the 1st
Defendant to explain that the Mr. Wilfred Chukwuemeka Eze was not seconded to
the 1st Defendant but that he was appointed as the Group Executive
Director, Finance & Accounts by the Head of State. A copy of this letter was
forwarded to Mr. Wilfred Chukwuemeka Eze by the Office of the Accountant
General of the Federation vide a letter dated 7th July 1995. Rather
than comply with the directives, the 1st Defendant retired Mr.
Wilfred Chukwuemeka Eze from service vide the letter dated 7th
August 1995. In another letter dated 29th August 1995, the 1st
Defendant informed Mr. Wilfred Chukwuemeka Eze that his entitlements, which
include his salary up to and including the 7th August 1995; three
months salary in lieu of notice; cash equivalent of due and/or duly authorized
deferred leave; gratuity and entitlements under the 1st Defendant's
pension scheme, are being worked out and that he will soon be advised
to collect payment.
In a
letter dated 19th May 1997, the Presidency, Office of Establishments
and Management Services, clarified the fact that Mr. Wilfred Chukwuemeka Eze’s services
had been merged and his pensionable service is recognized from 1st
February 1962 till 12th May 2003 when he
would have attained 60 years of age but excluding periods of unemployment
from 26th June 1976 to 31st July 1976 and 1st
August 1977 to 13th August 1977, which would be non-pensionable. Despite
this confirmation and clarification provided by the Office of Establishments
and
Management
Services, the Defendant still refused to pay Mr. Wilfred Chukwuemeka Eze his
gratuity, pension and all other entitlements and benefits due and payable
to a retired staff of the Defendant. Mr. Wilfred Chukwuemeka Eze had written
several letters, up to the letter of 17th August 2017, to appeal to
the 1st Defendant to pay his retirement benefits and allowances but
the 1st defendant refused, and this caused the health of Mr. Wilfred
Chukwuemeka Eze to deteriorate as he had no access to his retirement benefits or to
the 1st Defendant's health facilities. Mr. Wilfred Chukwuemeka Eze
eventually died on the 19th April 2019 without receiving his
retirement benefits and entitlements. After the death of Mr. Wilfred
Chukwuemeka Eze, his family wrote several letters to the 1st
defendant to appeal for the payment of his entitlements but the 1st Defendant
ignored the pleas.
The 1st
Defendant denied Mr. Wilfred Chukwuemeka Eze his right and entitlement
to pension or retirement benefits on the grounds that Mr. Wilfred Chukwuemeka
Eze was not pensionable even though this issue had been clarified by the Office
of Establishments and Management Services in the Presidency vide the letter
dated 19th May 1997 where it was stated that Mr. Wilfred Chukwuemeka
Eze was pensionable as his pensionable service was recognized
from 1st February 1962 to 12th May 2003. Prior to
his death, Mr. Wilfred Chukwuemeka Eze had written several letters to the 1st
Defendant appealing for the payment of his salary arrears for the months of April,
May, June, July and August 1995 and for his pension and gratuity be paid but none
of the letters was honoured.
Documents frontloaded by the claimants are as
listed in the list of documents filed together with the claimants’ 2nd
amended statement of facts. The documents are 26 in number.
FACTS PLEADED BY THE 1ST DEFENDANT
The
facts pleaded by the 1st defendant are as follows: Late Mr. Wilfred
Chukwuemeka Eze was an ex-staff of the 1st Defendant who was
appointed by the then Head of State and he served as the Group Executive
Director, Finance & Accounts for less than two years before he was
retired by the Head of State who employed him. The 1st
defendant has not received any directive from the Presidency
to reinstate Mr. Wilfred Chukwuemeka Eze and the 1st Defendant
did not retire him. Late Mr. Wilfred Chukwuemeka Eze was retired by
the Ministry of Petroleum and Mineral Resources acting in
compliance with the directives of the Head of State. Mr.
Chukwuemeka Eze was an employee of the 1st Defendant for one year,
nine months and five days only. That is from 2/11/1993, he was appointed, to
7/8/1995, when he was retired by the Head of State. The entitlement of Mr.
Wilfred Chukwuemeka Eze in the 1st Defendant is only limited to the time
he worked with the 1st Defendant in accordance with the 1st
Defendant's employment rules and regulation at the time. The 1st
Defendant never received any letter from the Presidency, Office of
Establishments and Management Services on the issue of merger of
service of the late Mr. Wilfred Chukwuemeka Eze. The 1st
Defendant has its rules and regulation guiding the hiring of employees
as well as the manner in which those employees who have worked in
other agencies of government before being employed by the 1st
Defendant can merge their service years. The 1st Defendant could not
have given effect to the letter dated 19th May 1997 from
the Presidency, Office of Establishments and Management Services, because the
letter was not received by the 1st Defendant.
There
was no application by late Mr. Wilfred Chukwuemeka Eze to the 1st
Defendant for transfer of service. For late Mr. Wilfred Chukwuemeka Eze to transfer
his service to the 1st Defendant, the following procedure must have
been followed: he must have applied in writing to the 1st Defendant;
the Management Committee of the 1st Defendant must review and approve
the application; the approval is conveyed by the Group Managing Director of the 1st
Defendant. This procedure was never followed by late Mr. Wilfred Chukwuemeka
Eze. The 1st Defendant did not fail or refuse to pay Mr. Wilfred
Chukwuemeka Eze’s retirement benefits and allowances. The 1st
defendant did not also cause Mr. Wilfred Chukwuemeka Eze’s death. The
reason for the refusal of the 1st Defendant to pay the late Mr.
Chukwuemeka Eze any pension or gratuity is that he worked with the 1st
Defendant for just one year, nine months and five days, and as a result, he did
not quality to enjoy pension under the Pension Scheme of the 1st
Defendant. By the provision of the 1st defendant’s Conditions of
Service, an employee entitled to gratuity and or pension if such employee served
the 1st Defendant for at least 10 years. In paragraph 17 of
statement of defence, the 1st defendant set out the provisions of
Section 16.4.8 () of the 1st Defendant's Conditions of
Service, which provides as follows:
NON-ELIGIBILITY
FOR GRATUITY
An employee who has less than ten
(10) years continuous employment with the Corporation or whose service has been transferred
or seconded to the Corporation from any public
service of Nigeria and whose period
of service are in the aggregate less than ten (10) years shall not be eligible
for gratuity under the scheme."
The 1st Defendant
did not subject late Mr. Wilfred Chukwuemeka Eze to any form of inhuman
treatment. Late Mr. Wilfred Chukwuemeka Eze was not entitled to pension and
gratuity from the 1st Defendant because his year of service
in the 1st Defendant was below 10 years which was the minimum
years of service that could have entitled him to pension and
gratuity. The letter dated 19th May 1997 from the Presidency,
Office of Establishment and Management Services was addressed to
the Accountant General of the Federation, Federal Ministry
of Finance where late Mr. Wilfred Chukwuemeka Eze worked before he was employed
into the service of the 1st Defendant.
The only document frontloaded by the 1st
defendant is its condition of service for its employees.
FACTS PLEADED BY THE 2ND DEFENDANT
The
averments made by the 2nd defendant in its statement of defence are
as follows: Section 24 of the Pension Reform Act 2014 is clear as to
who is responsible for the Claim in issue in this suit. In order to ensure that
Ministries, Departments and Agencies (MDAs) of the Federal Government
honor their obligations to their Officers, who worked in the Office of
the Head of the Civil Service of the Federation (OHCSF)
usually intervene administratively to ensure death benefits of their
officers are paid. But with the emergence of the Pension Reform Act 2014 all
matters relating to Retirement benefits are administered by the Pension
Transitional Arrangements Directorate (PTAD). The 2nd
Defendant is not responsible for the Management of Pension of Retirees nor is
it responsible for the death benefits of the Claimants in this suit. The
Claimants were informed by the 1st Defendant via a letter
dated 5th August 2019 that the deceased does not qualify for Pension
and gratuity having served the 1st defendant for only 1 year and nine
(9) months instead of a minimum of 10 years and 5years respectively. The 2nd
defendant is not responsible for the payment of the deceased retirement and
death benefits nor any entitlement as claimed by the
Claimants. The 2nd Defendant proceeded to claim the following
reliefs in the statement of defence:
1. A declaration that,
by the provisions of Pension Reform Act, 2004, and Pension Reform Act,
2014, being the applicable legislations for Employees in any arm
of the Federal Civil Service, the 2nd Defendant is not
liable for the death benefits of late Mr. Wilfred Chukwuemeka
Eze being claimed in this suit.
2. A declaration
that, the Claimant cannot validly confer authority on the 2nd
Defendant in 2021 through the institution of this suit to assume responsibility
for the death benefits of late Mr. Wilfred Chukwuemeka Eze is
in violation of clear provisions of Acts of Parliament.
3. A declaration that,
by the clear provisions of Pension Reform Act, 2004 and Pension Reform,
2014, which this Court is hereby urged to take Judicial Notice
of, the 2nd Defendant is not liable for any
of the Claims of the Claimants in this suit.
4. A declaration
that this Court is established by law and will not act contrary to law to
hold the 2nd Defendant liable to any of the
claims of the Claimant in the face of clear provisions of the Pension
Reform Act, 2004 and Pension Reform Act, 2014.
5. A declaration that,
the Claimant's case has not disclosed any wrongful act of the 2nd
Defendant under any of the applicable Legislations, and that the 2nd
Defendant is not a necessary party to this suit.
6. An
order dismissing the case the Claimant brought against the 2nd Defendant
on the ground that the Claimant's case has not disclosed any
reasonable cause of action against the 2nd Defendant as required by law.
7. An order striking
out the name of the 2nd Defendant from this suit on the
ground that, the presence of the 2nd Defendant in this matter affects
the proper constitution of the case with respect to parties.
8. An order that
the presence in a suit, of a party against whom there is no
cause of action according to the relevant laws, affects the competence
of the suit for adjudication.
The 2nd defendant did not frontload any document.
FINAL WRITTEN ADDRESSES
The Claimants’
Final Written Address was filed on the 9th day of April, 2025. Three
issues were submitted for the Court’s determination. I have considered and
evaluated all the submissions and arguments canvassed in the said Final Written
Address of the Claimants. I do not see the need to rehash their contents
herein. However necessary reference will be made to them in the course of this
judgment.
The 1st
Defendant’s Final Written Address was filed on the 16th day of May
2025. Two issues were submitted for the court’s determination. I have thoroughly
considered and evaluated all the submissions and arguments canvassed in the
said Final Written Address of the 1st Defendant. I do not see any
need to rehash the contents herein. However necessary reference will be made to
them in the course of this judgment.
The Claimants
also filed a Reply on points of law on 30th June 2025, the contents
of which I have equally considered and evaluated. Any necessary reference will
be made to them in the course of this judgment.
DECISION
In
paragraph 23 of the amended statement of defence filed by the 1st
defendant, the 1st defendant averred that it shall raise, at the
hearing of this suit, the issues whether or not the Claimants have any locus to
institute this action and whether or not this Court has jurisdiction
to entertain the suit. In issue 1 of the 1st defendant’s final
address, it was submitted that the claimants’ suit is statute barred by the effect
of section 12 of the NNPC Act, and that the claimants have no locus standi to
institute or maintain this suit. Elaborate arguments were made on the 2 points
in paragraphs 11 to 41 of the 1st defendant’s final address. The
claimants’ responses to the 2 points of objection are contained in paragraphs
2.04 to 2.23 of their final written address. I have considered the arguments
made by the parties for and against the 2 points of objection.
The 1st
defendant relied on section 12 of the NNPC Act, LFN 2004 in its contention that
this suit is statute barred. The NNPC Act has been repealed in section 310[1]
(e) of the Petroleum Industry Act 2021. As at the date this court was
considering the objection of the 1st defendant, the Act under which
the objection was brought was no longer a valid legislation. I cannot therefore
use a repealed legislation to determine whether or
not this suit is statute barred.
On the issue that the claimants lack locus standi to institute
this suit, Order 11 Rules 1 and 4 of the Rules of
this court grants a right of action on a next of kin or beneficiary or a person
appointed as the administrator of the estate of a deceased employee, who died
intestate, to claim for the outstanding salary, gratuity, pensions, benefits or
any other entitlement of a deceased employee from the employer. The Rule
requires the claimant to produce proof of the next of kinship or relationship,
or Letter of Administration to be entitled to bring and maintain the action.
The claimants have shown in paragraphs 1, 2 and 25 of the
amended statement of facts that they are the wife and daughter, respectively,
of Mr.
Wilfred Chukwuemeka Eze who died intestate on 19th April 2019. The
claimants also disclosed that they are the Administrators of the
Estate of the late Mr. Wilfred Chukwuemeka Eze. I have seen the Letter of
Administration granted on 31st May 2020 by the Probate Registry of
the High Court of Enugu State to the claimants as Administrators
of the Estate of Mr. Wilfred Chukwuemeka Eze. The claimants also showed that
Mr. Wilfred Chukwuemeka Eze was appointed into the service of the 1st
defendant in 1993 and he was retired in 1995. According to the claimants, Mr.
Wilfred Chukwuemeka
Eze was not paid his pension and gratuity until he died in 2019. Their claims
in this case are principally for the court to determine whether Mr. Wilfred
Chukwuemeka Eze was entitled to be paid pension and gratuity by the 1st
defendant and if the court finds in the affirmative, to make orders compelling
the 1st defendant to pay his entitlements to the claimants, being
the beneficiaries and Administrators of his Estate.
Where
salaries, allowances, pension, gratuity and other benefits is owed to an
employee who has died, his next of kin, beneficiary of his estate or an
appointed administrator for his estate is vested with the locus standi to sue the
employer to recover the outstanding payments. In other
words, a claim for outstanding salary, gratuity, pensions, benefit or any other
entitlement of a deceased employee survives the deceased employee and can be
recovered in an action by the next of kin, beneficiary or the appointed
administrator. I find that the claimants have shown
sufficient locus standi to institute this suit.
The 2nd
defendant filed a statement of defence where it sought a total of 8 claims in
paragraph 8 thereof. The claims were not headed or indicated to be a counter
claim. The claims set out in paragraph 8 of the statement of defence of the 2nd
defendant are in violation of the provisions of Order 32 Rule 5 of the Rules of
this Court and they are accordingly struck out.
The parties in this suit, having consented to the procedure of
trial on record, this suit will accordingly be determined using only the facts pleaded by the parties and the
documents frontloaded by them. I have observed, from the facts pleaded by
the claimants and the 1st defendant, that the issue involved in this
suit is simply whether or not the late Mr. Wilfred Chukwuemeka
Eze is
entitled to be paid pension and gratuity by the 1st defendant after
his retirement from the service of the 1st defendant. I think this
issue can conveniently be resolved from the pleaded facts and the documents
frontloaded by the parties.
The case of the claimants is that Mr. Wilfred Chukwuemeka Eze was
appointed into the service of the 1st defendant in October 1993 and
he was retired from the service of the 1st Defendant on 7th
August 1995. In a letter dated 29th August 1995, the 1st
Defendant informed Mr. Wilfred Chukwuemeka Eze that his entitlements, which
include his salary up to and including the 7th August 1995; three
months salary in lieu of notice; cash equivalent of due and/or duly authorized
deferred leave; gratuity and entitlements under the 1st Defendant's
pension scheme, were being worked out and that he will soon be paid. Since his
retirement however, the 1st defendant failed and refused to pay Mr.
Wilfred Chukwuemeka Eze his gratuity, pension and all other entitlements and
benefits due and payable to a retired staff of the 1st
Defendant up till the time Mr. Wilfred Chukwuemeka Eze died on 19th
April 2019.
On its
part, the 1st defendant explained the reason for non-payment of gratuity
and pension to Mr. Wilfred Chukwuemeka Eze. It averred that the refusal to pay
the late Mr. Chukwuemeka Eze any pension or gratuity
was because by the provision of the 1st
defendant’s Conditions of Service, an employee is entitled to
gratuity and or pension if such an employee served the 1st Defendant
for at least 10 years. In the case of Mr. Chukwuemeka Eze, he worked with the 1st
Defendant for just one year, nine months and five days, and as a result, he did
not quality to enjoy pension under the Pension
Scheme of the 1st Defendant. The 1st
defendant also averred that late Mr. Wilfred Chukwuemeka Eze did
not transfer
his service to the 1st Defendant.
The case
of the claimants is all about the failure of the 1st defendant to
pay the pension and gratuity of Mr. Wilfred Chukwuemeka Eze since he was
retired from the service of the 1st defendant in August 1995. The
first thing the claimants are required to establish in this suit to entitle
them to an order of this court to compel the 1st defendant to pay
the pension and gratuity of Mr. Wilfred Chukwuemeka Eze is what entitled Mr.
Wilfred Chukwuemeka Eze to be paid pension and gratuity by the 1st
defendant upon retirement from its service. The claimants however failed to plead
any fact showing that the pension and gratuity which they claim on behalf of
Mr. Wilfred Chukwuemeka Eze was due to him by virtue of the terms of his
appointment or the condition of service which regulated his appointment or the
PSR or any regulation or law. The claimants did not claim for the payment of
the pension and gratuity of Mr. Wilfred Chukwuemeka Eze on the basis of any
condition of service. From their pleading, what they solely relied upon for
making the claims is the allegation of the merger of the service of Mr. Wilfred
Chukwuemeka Eze.
In paragraph 15 of the amended statement of facts, the claimants
pleaded that the Presidency, Office of Establishments and Management Services
wrote a letter dated 19th May 1997 where it clarified the fact that
Mr. Wilfred Chukwuemeka Eze’s services had been merged and his pensionable
service is recognized from 1st February 1962 till 12th
May 2003 when he would have attained 60 years of age. In the final written address of the claimants, particularly at paragraphs
1.16, 1.17, 1.27, 2.36, 2.58, 2.59, 2.61 and 2.62, it was submitted that the
late Mr.
Wilfred Chukwuemeka Eze was in service from 1st February 1962 when
he joined the Federal Civil Service up to the date he was compulsorily retired
from the service of the 1st Defendant. It was argued that the
service of late Mr. Wilfred Chukwuemeka Eze in the Federal Civil Service was
merged with his service in the 1st defendant and this merger of
service made him pensionable in the services of the 1st Defendant.
It was argued that late Mr. Wilfred Chukwuemeka Eze, having rendered 25 years
of services, part of which was in the service of the 1st Defendant, he is entitled to gratuity and pension
from the 1st Defendant. Counsel for the claimants further argued
that where a civil servant transfers or merges his
services, he becomes pensionable at the last place of his employment
in the public service by reason of the merger of his services. It
was the conclusion of learned counsel, relying on the case
of NEW
NIGERIA DEVELOPMENT COMPANY LIMITED vs. DANIEL UGBABE [2022] 16 NWLR [Pt. 1855] 101, that the
1st Defendant is under obligation to pay Mr. Wilfred Chukwuemeka Eze’s pension, being his last employer.
The implication of the submissions of the learned counsel for the
claimants is that the service of Mr. Wilfred Chukwuemeka Eze in the civil service was merged with his appointment into the
service of the 1st defendant such that the period of his service in
the 1st defendant is a continuation of his service in the civil
service. The argument that there was merger of the service of Mr.
Wilfred Chukwuemeka Eze with his appointment into the 1st
defendant is founded on the letter dated 19th May 1997 from the
Presidency, Office of Establishments and Management Services to the
Accountant-General of the Federation. The content of the letter reads as
follows:
MR. W.
C. EZE
MERGING
OF SERVICES
I am
directed to refer to your letter Ref. No. E.9932/166/Gen.Reg dated 19th
February, 1986 on the above issue and to state that Mr. W.
C. Eze's request has been granted.
2.
Accordingly, his pensionable service is recognised from 1st
February, 1962 till 12th May, 2003 when he attains sixty (60) years
of age but excluding periods of unemployment from 26th June, 1976 to
31st July, 1976 and 1st August, 1977 to 13th
August, 1977 which would be non-pensionable.
Inform
him, please.
The 1st defendant denied knowledge of this letter. It
averred that it never received any letter from the Presidency, Office of
Establishments and Management Services on the
issue of merger of service of the late Mr. Wilfred Chukwuemeka Eze. The letter of 19th May 1997 was addressed to the
Accountant General of the Federation, Federal Ministry
of Finance where late Mr. Wilfred Chukwuemeka Eze worked before he was appointed into the service of the 1st Defendant and as
such, the 1st Defendant could not have given effect to the letter
which it never received.
I have
seen facts pleaded by the parties showing that late Mr. Wilfred Chukwuemeka Eze
was in the civil service before his appointment into the service of the 1st
defendant. See paragraph 4 of the amended statement of facts and paragraph 18
of 1st defendant’s emended statement of defence. However,
particulars of his service and places where he served were not stated, except
the Federal Ministry of Finance where he was serving before his appointment
into the 1st defendant. Now, the question is whether the appointment
of Mr. Wilfred Chukwuemeka Eze into the service of the 1st defendant
was a continuation of his employment in the civil service.
The
claimants relied on the letter dated 19th May
1997 from the
Presidency, Office of Establishments and Management Services. I have examined the letter. It was addressed to the
Accountant-General of the Federation and not to the 1st defendant.
The date of the letter is also a date almost 2 years after Mr.
Wilfred Chukwuemeka Eze had been retired from the service of the 1st
defendant. By addressing the letter to the Accountant-General of the
Federation, Federal Ministry of Finance, where Mr. Wilfred
Chukwuemeka Eze served before he was appointed by the Head of State, the
writer appears to believe Mr. Wilfred Chukwuemeka Eze was still in the service
of the Federal Ministry of Finance as he calculated his retirement
date up to May 2003. I also observed in the letter that the
application or request for merger of service of Mr. Wilfred Chukwuemeka Eze was made
since February 1986. That was about 7 years before his appointment into the
service of the 1st defendant. Thus, the letter of 19th
May 1997 could not have been the evidence of merger of the service of Mr.
Wilfred Chukwuemeka Eze with his appointment into the service of the 1st
defendant. Importantly, there is no reference in the letter to the merger of
the service of Mr. Wilfred Chukwuemeka Eze with his appointment
into the service of the 1st defendant. In other words, the letter dated
19th May 1997 is not the evidence of merger of the service of Mr.
Wilfred Chukwuemeka Eze with his appointment into the service of the 1st
defendant.
Other
than this letter, the claimants did not plead any fact to show that the service
of Mr.
Wilfred Chukwuemeka Eze was merged with his appointment into the
service of the 1st defendant. I have gone further to examine the other
documents frontloaded by the claimants to see if I can find evidence of merger
or transfer of the service of Mr. Wilfred Chukwuemeka Eze to the 1st
defendant.
The claimants pleaded the facts of the appointment of late Mr.
Wilfred Chukwuemeka Eze with the 1st defendant in
paragraphs 4 to 7 of the amended statement of facts. The claimants averred that
by a
letter dated 11th October 1993, the 1st Defendant
conveyed the approval of the Secretary of Petroleum & Mineral Resources for
the appointment of Mr. Wilfred Chukwuemeka Eze as the Acting Group Executive
Director, Finance & Accounts in the 1st defendant. Also, by a
press release dated 2nd November 1993, the then Head of State, Chief
Ernest Shonekan, approved the appointment of Mr. Wilfred Chukwuemeka Eze as the
Group Executive Director, Finance & Accounts of the 1st
defendant. The 1st defendant thereafter issued a Letter of
Appointment dated 3rd November 1993 to Mr. Wilfred Chukwuemeka Eze. The
letter of appointment of Mr. Wilfred Chukwuemeka Eze as the Acting Group
Executive Director of the 1st defendant, dated 11th
October 1993, reads as follows:
ACTING APPOINTMENT AS GROUP EXECUTIVE
DIRECTOR, FINANCE
& ACCOUNTS
It is my
pleasure to convey to you the approval of Honourable Secretary of Petroleum
& Mineral Resources of your acting appointment as Group Executive Director,
Finance & Accounts in NNPC.
The
salary attached to this position is N162,400.00
per annum on the Corporation's GSS16. The fringe
benefits and other terms of the acting appointment
are as contained in NNPC Conditions of Service. The
appointment takes effect from 8th October, 1993.
On
assumption of duty, please report to the office of the Group Managing Director 7, Kofo
Abayomi Street, Victoria Island, Lagos.
Please
accept our congratulations. We look forward to your contribution in the
service of the Corporation.
The Press Release dated 2nd November
1993 also reads as follows:
The Head
of State, Commander in Chief of the Armed Forces, Chíef Ernest Shonekan
has approved the appointment of Mr. C. O. Oyibo as the Group Managing
Director of the Nigerian National Petrolnum Corporation.
The
Head of State also approved the appointment of six other Executive Directors. They
are:
i)
Group Executive Director, Downstream
Operations - Alhaji D. A. Bayero
ii)
Group Executive Director, Upstream Operations - Chief G.
T. Grant
iii)
Group Executive Director, Corporate Services - Alhaji I.
M. Dapchi
iv)
Group Executive Director, NAPIMS - Chief M.A. Olounfemi
v)
Group Executive Director, Commercial – Chief E. D. Akan
vi)
Group Executive Director, Finance & Accounts - Mr. W.
C. Eze
The letter of appointment of Mr.
Wilfred Chukwuemeka Eze as the Group
Executive Director of the 1st
defendant dated 3rd
November 1993 reads thus:
LETTER
OF APPOINTMENT
I am
pleased to convey to you the approval of the Honourable Secretary, Petroleum
& Mineral Resources for your appointment as Group Executive Director, Finance
& Accounts on the Corporation's GSS16, i.e. salary of N162,400.00 per annun.
The
appointment takes effect from 2nd November 1993. You are expected to
conclude handing/taking over and assume duties at your new post on or before 8th
November, 1993.
I wish
you a successful tenure of office and look forward to your further contributions
in the NNPC.
These
documents did not indicate that the appointment of Mr.
Wilfred Chukwuemeka Eze was a transfer of service or merger of service
or a promotion in the civil service. To further show that the appointment of Mr.
Wilfred Chukwuemeka Eze as Group Executive Director (Finance
& Accounts) of the 1st defendant was not a
transfer, secondment or deployment, the Federal Ministry of Finance wrote the
letter dated 23rd May 1995 to the 1st defendant where it
stated as follows in paragraphs 2 and 3:
“I wish
to draw your attention to the fact that Mr. W. C. Eze was not on secondment to
the NNPC and, for this reason, he cannot be deseconded. Mr. Eze
was actually appointed Group Executive Director (Finance & Accounts) by the
former Head of State, Chief Ernest Shonekan in November 1993. His appointment
to this position can only be annulled by the Head of State. I am therefore,
advising you to withdraw the letter and recall Mr. Eze to resume
his work immediately.
The
contents of the above documents reveal that the appointment of Mr.
Wilfred Chukwuemeka Eze as Group Executive Director (Finance
& Accounts) of the 1st defendant in November 1993
was a new appointment made by the Head of State independent of his employment
in the civil service. His appointment was also at the pleasure of the Head of
State and not subject to the control of the 3rd
defendant, Federal Civil Service Commission. This fact was clarified in the letter
dated 14th June 1995 from the Presidency, Office of the Secretary to the Government of the
Federation to the 1st defendant. The second paragraph of the letter
reads:
I am
directed to emphasise the fact that Mr. Eze was appointed the
Group Executive Director (Finance & Accounts) along with five others in
November 1993 by the former Head of State as indicated in the Nigeria National
Petroleum Corporation press release of 2nd November 1993. It is
therefore logical that the appointment can only be terminated on the approval
of the Head of State.
The
fact that the appointment of Mr. Wilfred Chukwuemeka Eze was detached from his
service in the civil service was further demonstrated by the manner he was
retired from service of the 1st defendant. His letter of retirement
dated 7th August 1995 from the Ministry
of Petroleum and Mineral Resources reads:
RETIREMENT
FROM SERVICE OF THE CORPORATION
I wish to
inform you that the Head of State and Commander-in-Chief of the
Armed Forces has approved your retirement from the services of NNPC in line
with the stipulations of Decree Number 17 of 1984, effective from the 7th
August, 1995.
The
retirement of Mr. Wilfred Chukwuemeka Eze from his appointment into the service
of the 1st defendant was done by the Head of State who appointed
him, and not by the 3rd defendant. Thus, the facts of this case and
the documents produced before the court show clearly that the appointment of Mr.
Wilfred Chukwuemeka Eze as the Group Executive Director (Finance
& Accounts) of the 1st defendant was not a
merger of service or transfer of service. Thus, being a fresh appointment made
by the Head of State, the claimant served the 1st defendant from November
1993, when he was appointed, to August 1995 when he was retired from the
service of the 1st defendant. It is to be noted that Mr.
Wilfred Chukwuemeka Eze did not challenge his retirement by the Head of
State up till the time he died.
It is
clear from the foregoing that the merger of service relied upon by the
claimants to found their claim does not avail them. This is also in addition to
the fact that they did not base their claim on any condition of service
applicable to the appointment of Mr. Wilfred Chukwuemeka Eze.
The 1st defendant averred that Mr.
Chukwuemeka Eze was in the service of the 1st Defendant for one year, nine months and five days only and his entitlement is only
limited to the time he worked with the 1st Defendant in accordance
with the 1st Defendant's employment rules and regulation at
the time. The 1st defendant relied on the
provisions of Section 16.4.8 (iii) of the 1st Defendant's Conditions
of Service and averred that late Mr. Wilfred Chukwuemeka Eze was not entitled
to pension and gratuity from the 1st Defendant
because his year of service in the 1st Defendant was below 10 years which was the minimum years of service that could have entitled him to pension and gratuity. The claimants did not
file a reply to the 1st defendant’s statement of defence. Therefore,
the claimants did not dispute these averments of the 1st defendant.
It was however argued in the claimants’ final written address that
the condition of service of the 1st defendant was invalid and not
applicable to the employment of Mr. Wilfred Chukwuemeka Eze. It was
argued that the employment of Mr. Wilfred Chukwuemeka Eze in
the Federal Civil Service, including his service in the 1st
defendant, was regulated by the Civil Service Rules, which is a bye-law under
the Constitution, and not by the condition of service of the 1st
defendant. It was further argued that the condition of service of the 1st
defendant cannot take precedence over the Civil Service Rules.
I have carefully examined the facts pleaded by the claimants but I
cannot find anywhere they pleaded that the employment of Mr.
Wilfred Chukwuemeka Eze in the Federal Civil Service,
including his service in the 1st defendant, was regulated by the
Civil Service Rules. The claimants did not plead the condition of service which
regulated the employment of Mr. Wilfred Chukwuemeka Eze nor did they plead the condition
of service or regulation or law which entitled Mr. Wilfred Chukwuemeka Eze to
be paid pension and gratuity by the 1st defendant. The claimants
merely relied on merger of service or continuity of service. Also, the claimants did not traverse the averments
of the 1st defendant in paragraphs 8, 16 and 17 of the statement of
defence where it pleaded that the entitlement of Mr. Wilfred Chukwuemeka Eze to
gratuity and pension was regulated by its condition of service. I have also seen
the letter written by the 1st defendant, dated 11th
October 1993, to Mr. Wilfred Chukwuemeka Eze informing him of his appointment
as Acting Group Executive Director, Finance & Accounts. The
second paragraph of the letter mentioned that “the fringe
benefits and other terms of the acting appointment are as contained in NNPC Conditions of Service.” It was the acting
appointment that metamorphosized into a substantive appointment by the Head of
State in November 1993. The implication is that the condition of service which
regulated the appointment of Mr. Wilfred Chukwuemeka Eze in the 1st
defendant was the 1st defendant’s condition of service.
I have also heard learned counsel for the claimants argue that
parastatals and agencies of the Federal Government, like the 1st
defendant, are bound by the PSR and cannot have their conditions of service
outside the PSR. This submission of counsel, in my view, is not sound, in view
of the provisions of Rules 160101 and 160103 of the old/repealed PSR applicable
up to the time this suit was instituted in 2020. Rule 160101 defined a Parastatal
as a government-owned organization established by statute to render specified
services(s) to the public while Rule 160103 gives parastatals the liberty to
make their internal condition of service, made in line with the general
principles contained in the PSR, to regulate their employment but in the
absence of an internal condition of service, the provisions of the PSR shall
apply. The 1st defendant, no doubt, is a creation of statute and a
parastatal of the Federal Government. By these provisions of the PSR, the 1st
defendant is empowered to make a Conditions of Service for its employees and to apply same in regulating its relationship with its
employees. Accordingly, the condition of
service made by the 1st defendant, pursuant to this provision of the
PSR, is valid, effective and applicable to those employed into the service of
the 1st defendant, including to Mr. Wilfred Chukwuemeka Eze, as he was informed in the letter dated 11th
October 1993.
The 1st
defendant frontloaded its condition of service. I have seen section 16.4 where
it established the Pension and Gratuity Scheme and section 16.4.4 which provides
that the Scheme is applicable to all employees on permanent appointment
excluding those on contract appointment. For those eligible to be paid
gratuity, section 16.4.8 (ii) provide as follows:
“NON-ELIGIBILITY
FOR GRATUITY
An
employee who has less than ten (10) years continuous employment with the Corporation or whose service has been transferred or seconded to the Corporation from any public service of Nigeria and whose period of service are in the aggregate less than ten (10) years shall not be eligible for gratuity under the scheme.”
I have
also examined section 16.4.8 (viii) of the 1st defendant’s condition
of service which provides as follows:
“PERIOD OF SERVICE
Duration
of service counted under the scheme shall be interpreted as unbroken period of
service for the purposes of computation of and payment of benefits. The
transfer or secondment from all scheduled service shall be regarded as continuous
service. The cumulative years from all such services shall constitute one
unbroken service in conjunction with whatever length of service an employee
puts in the service of the Corporation.”
I have made the findings earlier in this judgment that the service
of Mr.
Wilfred Chukwuemeka Eze was not transferred to the 1st
defendant. He was also not on secondment to the 1st defendant. The Federal
Ministry of Finance and the Office of the Secretary to the Government of the
Federation confirmed this fact in their letters to the 1st
defendant dated 23rd May 1995 and 14th June 1995. I have also resolved earlier in this judgment that the claimants
did not show that there was a merger of the service of Mr.
Wilfred Chukwuemeka Eze with the 1st
defendant. Therefore, the provisions of section 16.4.8 (viii) of the 1st
defendant’s condition of service will not apply to
deem the years of services of Mr. Wilfred Chukwuemeka Eze to
constitute one unbroken service in combination with the period of his service
with the 1st defendant.
By section 16.4.8 (ii) of the 1st defendant’s
condition of service, an
employee on permanent appointment with the 1st
defendant will not be entitled to gratuity on 2 conditions:
i. Where he is less than 10 years in the employment
of the 1st defendant.
ii. Where, as a transferred or seconded employee to the 1st
defendant, his period of service in the 1st defendant is less than
10 years.
In
the case of late Mr. Wilfred Chukwuemeka Eze, he was less than 10 years
in the employment
of the 1st defendant. He was barely 2 years in the appointment when
he was retired by his appointor. He was therefore not eligible to be paid
gratuity under the 1st defendant’s condition of service.
To
conclude this judgment, I ought to make these clarifications. Mr. Wilfred
Chukwuemeka Eze’s service in the Civil Service was not transferred or seconded
or merged to his service with the 1st defendant. His appointment by
the Head of State into the service of the 1st defendant was a fresh
appointment, even though from the civil service. It was more like a political
appointment. He ought to have resigned or retired from the civil service to
take up the appointment or he could have applied for leave of absence. That
way, he would have been entitled to his benefits for the years he had served in
the civil service. Again, when he was retired from his appointment into the
service of the 1st defendant, it was that appointment that was terminated.
From the letter dated 19th May 1997, Mr. Wilfred Chukwuemeka Eze was
not due to retire from the Civil Service until 2003. He should have been re-absorbed
into the Civil Service. Perhaps, he did not make that attempt. Rather, he spent
years writing demand letters for his pension and gratuity to the wrong organization.
The
circumstances of this case are such that I do not find any strong reason to
make the orders sought against the 1st defendant. Even though the
claimants pleaded facts which tend to stimulate the sympathy of this court
towards the sufferings Mr. Wilfred Chukwuemeka Eze went through before he died,
courts of law do not decide cases on the basis of sympathy but on satisfactory
proof of the claims sought by the parties. Although the claimants were able to
establish the declaration sought in relief 1, the facts pleaded by them do not
entitle them to the grant of all other claims sought by them. In the result, the
declaration sought in relief 1 is made accordingly, while reliefs 2, 3, 4, 5,
6, 7, 8, 9 and 10 are dismissed.
Parties shall
bear their respective costs.
Judgment
is entered accordingly.
Hon.
Justice O. Y. Anuwe
Judge