In a landmark judgment, the National Industrial Court has ordered Radix Pension Managers Ltd., a major player in Nigeria’s pension management industry, to pay its former Managing Director, Mr. Kunle Jeffery Adeboye, a sum of N57 million and $21,000. This payment, which covers backlog salary, allowances, and severance entitlements, follows a legal battle that lasted nearly four years.
The ruling, delivered on November 19, 2024, by Justice R.H. Gwandu, granted all 14 reliefs sought by Adeboye in his suit marked NICN/LA/390/2021. The case stemmed from Adeboye’s resignation in 2021, which was prompted by unresolved concerns over corporate governance and a failure to settle his full entitlements.
Adeboye’s case has been a long and arduous journey, but it now serves as a significant victory for employee rights in Nigeria.
The Dispute: Unpaid Salaries and Severance
Mr. Adeboye, who served as Managing Director of Radix Pension Managers, filed his suit after the company failed to pay him the severance and salary backlog due to him following his resignation. The suit, filed on October 18, 2021, sought a declaration that Adeboye was entitled to his full severance package, including unpaid salaries, allowances, and other contractual entitlements.
In his claim, Adeboye sought N57,119,545.95 and $21,000 in unpaid wages and severance payments. He also demanded that the company be held accountable for breaching his employment contract and for the refusal to communicate the details of his service termination, which is customary in the industry.
The former Managing Director was represented in court by prominent lawyers, Femi Falana (SAN) and Funmi Falana (SAN), whose law firm handled the case pro bono.
Radix Pension’s Repeated Dismissal of Legal Demands
The legal battle began when Adeboye, after resigning voluntarily from his role, attempted to resolve the issue amicably with Radix Pension Managers. However, his repeated attempts to communicate with the company’s management were dismissed, according to Adeboye’s legal team. Despite numerous letters and formal requests for settlement, the pension firm failed to meet its contractual obligations.
In an official statement, Mr. Taiwo Olawanle of Falana Chambers, who represented Adeboye, described the case as “a victory for the justice system” and stressed the importance of the National Industrial Court in ensuring fairness for workers.
“This judgment underscores the crucial role of the court in defending the rights of law-abiding citizens in employment disputes,” Olawanle remarked.
He further added that Adeboye had been reluctant to pursue litigation initially, but the company’s unresponsiveness forced the legal action. Olawanle stated that this case should not have required a court proceeding, had Radix Pension adhered to its legal obligations.
A Pattern of Neglect
Adeboye’s case is not an isolated incident. One former employee of Radix Pension, who spoke anonymously, shared her own troubling experience with the company. The former worker, who had been with Radix while it was affiliated with IGI (Industrial and General Insurance), recounted her own struggle to secure severance payments.
“Radix’s attitude is always dismissive. It’s like they tell you, ‘do your worst,’” the former employee shared. She revealed that after a lengthy legal battle and participation in a class action lawsuit, she finally received her severance pay in installments, despite the company’s assurances to the National Pension Commission (PenCom).
Her story underscores the difficulties many employees face when trying to enforce their entitlements in the pension management sector. “I was entitled to less than N3 million, but it took me years to get it,” she said.
A Call for Stronger Oversight
This case has highlighted a growing concern about the integrity of pension fund managers in Nigeria. The former employee, who had faced similar issues, expressed concerns about the lack of strong regulatory enforcement in the pension industry. She called on the National Pension Commission (PenCom) to ensure that pension operators adhere to industry standards, particularly in their dealings with employees.
“The Contributory Pension Scheme is one of Nigeria’s most successful initiatives, yet companies like Radix are undermining its integrity by neglecting their obligations,” she said. “PenCom needs to extend its oversight and ensure these entities don’t tarnish the reputation of the entire pension industry.”
The former employee also expressed hope that the verdict in Adeboye’s case would mark a turning point for corporate governance practices in Nigeria.
“We hope this judgment sets a precedent for higher standards in employee relations across all sectors,” she concluded.
Radix Pension’s Future
The National Industrial Court’s ruling now places the spotlight on Radix Pension Managers. The company, which holds a license from PenCom to operate as a Pension Fund Administrator (PFA), is now required to pay Adeboye the total sum of N86.3 million, including legal costs.
This judgment is expected to have wider implications for other pension fund managers in Nigeria, with the case highlighting the need for employers in the pension sector to be more transparent and diligent in meeting their financial commitments to employees.
The ruling also reinforces the crucial role of the National Industrial Court in resolving complex employment disputes and safeguarding workers’ rights. It sets a powerful example for workers seeking justice in the corporate world, especially in sectors like pension management, which directly affect millions of Nigerians.
