Court orders NIRSAL to pay ex-executive director N1.08b
Federal High Court in Lagos has ordered NIRSAL Plc (Nigeria Incentive-Based Risk Sharing System for Agricultural Lending) to pay N1,082,160,500 to its former Executive Director, Kennedy Nwaruh, for unpaid allowances,
Federal High Court in Lagos has ordered NIRSAL Plc (Nigeria Incentive-Based Risk Sharing System for Agricultural Lending) to pay N1,082,160,500 to its former Executive Director, Kennedy Nwaruh, for unpaid allowances, entitlements and terminal benefits.
The court also awarded N10 million as cost of the suit in favour of the claimant.
Justice Alexander Owoeye made the orders in FHC/L/CS/1394/2025, instituted by Nwaruh against the company.
Through his counsel, Olamide Balogun, Nwaruh challenged legality of an Extraordinary General Meeting allegedly held on August 30, 2024, in which board of NIRSAL was dissolved and he was removed as executive director.
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He contended that he was not given the notice of the meeting as required under CAMA, rendering the proceedings and resolutions invalid.
He sought, among others, declarations that the failure to notify him vitiated the EGM and decisions taken at the meeting, including dissolution of the board and his removal.
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He asked the court to set aside the meeting and restrain the company from recognising his removal.
The claimant argued his appointment was for a fixed term and could not be terminated before its expiration.
He sought payment of N868,758,000 as allowances and benefits for the unexpired tenure, as well as N213,412,500 as terminal benefits under the firm’s remuneration policy.
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He also claimed N50 million as cost of the action and post-judgment interest.
NIRSAL, through its counsel, Ayodeji Oshin, filed a preliminary objection challenging jurisdiction of the court.
The company argued that the dispute was an employment matter, which falls within the exclusive jurisdiction of National Industrial Court.
It urged the court to strike out the suit for want of jurisdiction, on the ground that Federal High Court lacked competence to adjudicate labour and employment issues.
Justice Owoeye dismissed the preliminary objection, holding that the issues raised by the claimant were rooted in company law and corporate governance, particularly compliance with statutory provisions governing meetings and removal of directors.
After reviewing the submissions, the court upheld the claimant’s case.
It granted the reliefs sought, except for the cost of the suit, which was reduced from N50 million to N10 million.
The court awarded a total of N1,082,160,500 to Nwaruh, comprising unpaid entitlements for the unexpired portion of his tenure and his terminal benefits.
