“Appeal Court Hits PenCom With ₦10m Fine Over ‘Ghost Employment’ Scandal”

By The Trumpet Nigeria

The Court of Appeal sitting in Abuja has delivered a decisive judgment against the National Pension Commission (PenCom), awarding ₦10 million in costs over what it described as unfair labour practices involving 20 aggrieved staff members.

In a unanimous ruling by a three-member panel led by Justice Bilikisu Bello Aliyu, the appellate court not only sanctioned PenCom but also ordered the commission and its chairman to pay the affected workers their salaries and allowances covering a six-month period.

Background of the Dispute

The case stems from a prolonged employment dispute dating back to 2017, when the affected individuals were recruited by PenCom after undergoing a formal hiring process that included aptitude tests and interviews. Upon receiving employment letters, the recruits resigned from their previous jobs and resumed duty on May 2, 2017.

However, rather than being assigned roles, the workers were instructed to “await further directives”—instructions that never materialised. For years, they remained in professional limbo without deployment, salaries, or clarity regarding their employment status.

Lower Court Ruling Overturned

Initially, the National Industrial Court (NIC) had ruled in favour of PenCom in June 2023, holding that no valid contract of employment existed between the parties. Dissatisfied, the workers—led by Ismalia Gizali—approached the Court of Appeal to challenge the verdict.

Delivering the lead judgment, Justice Oyejoju Oyewumi overturned the lower court’s decision, affirming that a valid employment relationship did indeed exist between PenCom and the affected staff.

The court held that the issuance and acceptance of employment letters constituted a binding contract, stressing that PenCom could not evade responsibility by claiming unmet conditions that were not clearly stipulated.

Court Condemns PenCom’s Conduct

The appellate court strongly criticised PenCom’s handling of the situation, describing its actions as a clear case of unfair labour practice and breach of contract.

Justice Oyewumi noted that the commission created legitimate expectations for the workers, who relied on the job offers to their detriment by resigning from previous employment. She ruled that PenCom could not “change the rules” after inducing such reliance.

The court further held that the prolonged delay and uncertainty imposed on the workers amounted to unjust treatment, adding that the commission subjected them to “unnecessary and unwarranted rigours of litigation” since the case began in 2022.

Financial and Legal Implications

Beyond the ₦10 million cost awarded as a penalty, the ruling opens the door for the affected staff to claim outstanding salaries, allowances, and other entitlements tied to their employment.

Legal analysts say the judgment reinforces workers’ rights within Nigeria’s public sector and sends a strong warning to government agencies against exploitative or negligent employment practices.

Wider Significance

The decision is expected to have far-reaching implications for labour relations in Nigeria, particularly within public institutions. It underscores the judiciary’s readiness to uphold contractual obligations and protect employees from administrative abuse.

For PenCom, the ruling represents both a financial and reputational setback, while for the affected workers, it marks a significant victory after nearly a decade of uncertainty.

The Trumpet Insight:
This landmark judgment highlights a critical issue in Nigeria’s labour system—accountability in public sector recruitment. It reinforces the principle that once an employment offer is made and accepted, institutions must honour their obligations or face legal consequences.