Hon. Justice Zaynab Bashir of the National Industrial Court, Portharcourt Judicial Division has ordered that the Central Bank of Nigeria to immediately remove the name of one Blessing from its blacklist, thereby restoring her eligibility for employment within the Nigerian financial sector.

The Court declared that the Central Bank of Nigeria’s conduct is not only inconsistent with the letter of the Guidelines but also offends the principles of fairness, transparency, and accountability, which the Guidelines were designed to uphold.

On the facts, the claimant, Blessing, averred that she is unaware of the specific facts or circumstances that led to her inclusion on the blacklist maintained by the Central Bank of Nigeria. Counsel stated that the only information available to the Claimant was communicated through her employer, from whom she has now resigned.

Blessing further averred that, during the pendency of the case, she was advised by her employer to resign pending the resolution of the issue, and she accordingly tendered her resignation.

Learned Counsel to Blessing further contended that his client made formal inquiries to both Fidelity Bank and CBN, requesting clarification based on her blacklisting, but was not furnished with any substantive response, save for an indication from Fidelity Bank that an internal investigation was ongoing.

In defence, the 1st defendant- Fidelity Bank filed a notice of preliminary objection and urged the court to strike out the case for want of jurisdiction and competence. Counsel argued that prior to the termination of Blessing’s employment with Fidelity Bank, she was confronted with acts of misconduct and that such conduct justified the Bank in reporting the same to the industry regulator in order to safeguard the integrity of the financial system.

Fidelity Bank further contended that Blessing has not approached the Court with clean hands, having allegedly suppressed material facts relating to her misconduct.

The 2nd defendant- Central Bank of Nigeria also urged the court to strike out the case on the ground that the Court lacks jurisdiction to entertain same against the 2nd Defendant, on the ground that the Federal High Court has exclusive jurisdiction over matters relating to the 2nd Defendant as an agency of the Federal Government, and that the subject matter of the suit pertains to the regulatory powers of the CBN.

Counsel argued that Blessing failed to establish that her name was indeed placed on the blacklist maintained by the Central Bank of Nigeria, and that the claim is therefore unsubstantiated. Counsel accordingly urged the Court to dismiss Blessing’s suit for lacking merit.

In reply, learned counsel to Blessing argued that the reliefs sought by Blessing, particularly the restoration of her eligibility for employment within the financial sector, are intrinsically linked to her right to work and to be employed, which are matters squarely within the jurisdiction of this Court.

Blessing’s counsel, A. I. Salami, contended that the CBN cannot rely on evasive denials to join issues with his client, and that the facts deposed to by Blessing remain substantially unchallenged, and urged the court to grant the reliefs sought.

In a well-considered judgment, the presiding judge, Justice Zaynab Bashir, dismissed the Fidelity Bank and CBN preliminary objections and held that the inevitable consequence of this constitutional arrangement is that where a dispute involves a Federal Government agency and simultaneously arises from or is connected with employment or labour relations, jurisdiction resides exclusively in the National Industrial Court.

On the substantive matter, the Court reasoned that a holistic reading of Clause 7.0 of the CBN Revised Guidelines For Blacklisting For Banks And Other Financial Institutions In Nigeria reveals that the mere existence of misconduct is not sufficient, in and of itself, to warrant blacklisting. Rather, the misconduct must attain a certain threshold of gravity, measured against the level of harm occasioned and supported by verifiable and credible evidence.

Justice Zaynab noted there is no evidence before this Court to establish that the alleged conduct by Fidelity Bank resulted in any significant harm to the institution or its customers, nor is there any indication that it falls within the category of grave offences contemplated under the CBN Guidelines.

The Court stated that instead of the Fidelity Bank and CBN complying with the prescribed procedure, the Fidelity Bank merely facilitated the termination of Blessing’s employment through her direct employer and thereafter proceeded, without demonstrated due process, to subject her to the far more severe consequence of blacklisting.

The Court declared that Fidelity Bank has no record or proof of any offence directly incriminating Blessing, within the meaning of the Revised Guidelines for Blacklisting for Banks and Other Financial Institutions in Nigeria, that would warrant her inclusion on the blacklist maintained by the CBN.

“It is also instructive that while the 1st Defendant alleged multiple instances of misconduct, only a single incident was placed before this Court. Even in respect of that incident, the evidence falls short of establishing a basis for blacklisting within the contemplation of the applicable regulatory framework.”