The National Industrial Court in Calabar has ruled that the Nigerian Customs Service Board and the Nigeria Customs Service acted unconstitutionally in refusing to pay the pension of Chief Celestine Otu Edem, accrued over 27 years of service.
Delivering judgment, the Presiding Judge, Hon. Justice Sanusi Kado, held that Edem’s pension rights were protected under the 1979 Constitution, which was in force at the time his employment ended in 1996.
Justice Kado ordered the Customs authorities to compute and pay Edem’s pension from June 20, 1996, until July 2014, when the Pension Reform Act 2014 transferred pension responsibilities to the Pension Transitional Arrangement Directorate (PTAD).
Edem, who joined the Nigeria Customs Service in 1969, told the court that he was wrongfully terminated following disciplinary proceedings over alleged misconduct. “My right to fair hearing, protection against discrimination, and constitutionally guaranteed pension were denied,” he said, adding that repeated attempts to resolve the matter over the years proved unsuccessful.
Counsel to the claimant, Chidi Moses, Esq., argued that pension is a vested right that cannot be withdrawn once statutory conditions have been met. “He has already been punished through suspension and demotion; he should not face double punishment by losing his pension,” Moses submitted.
In their defence, the Nigerian Customs Service Board and the Nigeria Customs Service contended that dismissal for misconduct nullified Edem’s pension entitlement. They further argued that certain claims were statute-barred and urged the court to dismiss the suit.
However, Justice Kado observed that under the Pension Act applicable during Edem’s service, any officer who had served for at least 15 years qualified for pension benefits. Having served 27 years, the court found that Edem clearly met the requirement. The judge stressed that disciplinary measures, including suspension and demotion, could not extinguish an officer’s accrued pension rights.
The court clarified that while pensions accruing after July 2014 fall under the responsibility of PTAD, the Nigerian Customs Service Board and the Nigeria Customs Service remain liable for obligations preceding the transition. The authorities were directed to calculate Edem’s pension based on his final salary prior to termination.
Justice Kado described the refusal to pay the accrued pension as “wrongful and unconstitutional”, reaffirming the principle that pension rights are protected by law, regardless of subsequent disciplinary actions.
