Retirees slam FIRS with 1.3bn lawsuit over non-payment of insurance welfare package

Retirees slam FIRS with 1.3bn lawsuit over non-payment of insurance welfare package

Joel Oladele, Abuja

A group of retirees of the Federal Inland Revenue Services (FIRS) numbering 106, have instituted a lawsuit to the tune of 1.3bn against their former employer over unpaid welfare insurance.

According to the information made available to National Periscope by one of the Counsels to the retirees, Barr. Adekoya Olisa, he noted that the Welfare Insurance Scheme was a brain child of former Chairman of FIRS, Ms Ifueko Okauru.

He added that the scheme was funded through the employees bonus in 2008 and it is  payable as a percentage of Staff Annual Consolidated Salary when retirees exit from service which are rated between 37.5% and 75% of annual consolidated salary of retirees. 

At the commencement of the hearing of the suit numbered NICN/ABJ/96/2023 brought before Hon. Justice O. A. Obaseki-Osaghae of Court 2, National Industrial court A3 Abuja on Tuesday, The lead counsel to the claimants, Barr. Adedeji Adedayo Samuel (SAN) noted that “The Defendant was the employer of the Claimants  Federal Inland Revenue Service saddled with the responsibility of assessing, collecting, and accounting for tax and other revenues accruing to the Federal Government of Nigeria.

“Through wilful acts and/ or default, the Defendant induced the grievance of the Claimants and orchestrated the events that eventually led to the institution of this matter before this Honourable Court.”

He therefore prayed the Court to prevail on FIRS to pay his Clients (Retirees between 2016 -2022 summed up to One Hundred and Six Staffs as at the time of filing the instant suit) a sum of N1,348,884,341.84 (One Billion, Three hundred and forty eight million, Eight Hundred and Eighty Four Thousand Naira, Eighty four kobo) being monies belonging to the Claimants which is yet to be paid to them. 

“The Claimants avers that the Welfare Insurance Scheme is payable as a percentage of Staff Annual Consolidated Salary, payable and at the retirement of each of the staff of the Defendant as part of their retirement benefits.

“The Claimants avers that the Defendant is required to pay the Claimants using the appropriate rate as entrenched in the HR policy of the Defendant, 2013- 2022  as well as the Circular dated the 27th of February 2015 issued under the hand of the Acting Chairman of the Defendant the sum of N1,348,884,341.84 (One Billion, Three hundred and forty eight million, Eight Hundred and Eighty Four Thousand Naira, Eighty four kobo) being monies belonging to the Claimants.

“Pursuant to the Circular referred to in paragraphs 5 and 10 above, the Claimants wrote to the Defendant demanding for their legitimate entitlements having served the Country meritoriously all to no avail.” Olisa said

He stated that the criteria for granting the welfare package is as stated in the circular dated 27th February, 2015 captioned “Form of Exit” adding that the Claimants wrote specifically to the Defendant on the 6h of February 2020 and 22ND of June 2020 respectively. 

“The Claimants hereby plead the letter dated the 6th of February 2020 and 22ND of June 2020 addressed to the Executive Chairman of the Federal Inland Revenue Service and shall rely on the same at trial,” the suit read.

Olisa further noted in the suit that in response to the letter of the retirees dated  22nd of June 2020, FIRS wrote a letter to them the same day, suggesting  that work was in progress with respect to their demands.

However, “despite the assurances in the Defendants letter dated the 2nd of July 2020, the Defendant has failed, till date, to pay the Claimants their lawful entitlements.”

He argued that the response of the Defendant through another letter dated the 18 of May 2021 admitting in clear terms the Claimants claim but predicated the non-payment of the Claimants entitlements to the fact that the said funds were swept away into the Treasury Single Account (TSA) should be jettisoned.

The witness to the Claimants, Abah Dennis Ogbu said they rely on many document to substantiate their claim, which includes but not limited to: “Circular dated 27h February 2015 titled: “Support Services Group/Human Capital Management and Development Department” with reference number FIRS/HCM/ER&D/R/E/6134/I/282.”

While fielding questions from the lead counsel to the Defendant, Ogbu added that the said Circular communicated to the Claimants and indeed all employees of the Defendant reflected the requirements for exiting the service under the new policy.

Through the suit, notice was given to the Defendant to produce the original copy of the said circular.

Justice Obaseki-Osaghae having heard from both parties fixed March 13/14, 2024 to allow for motion and  further hearing.