… Orders them to pay full compensation
Baker Hughes, a US multinational oilfield services company, and its Nigerian affiliate, Pressure Control Systems Nigeria Limited, have been found guilty of discriminatory practices and unlawful termination of employment by the National Industrial Court in Lagos.
The ruling, handed down by Honourable Justice Ikechi Gerald Nweneka on April 28th, 2025, marks a significant victory for employee rights and sets a precedent for future cases involving multinational corporations operating within Nigeria’s oil and gas sector.
Suit No. NICN/LA/118/2023 was filed by a former, Nigerian-born female Executive Vice President of Pressure Control Systems Nigeria Limited, who claimed wrongful termination and discrimination.
The court ruled overwhelmingly in favour of the plaintiff, awarding a series of reliefs.
The court declared the plaintiff’s termination wrongful, finding it to be a breach of her employment contract and, more importantly, a violation of the mandatory approval process outlined in the guidelines for the release of staff in the Nigerian oil and gas industry.
This last point is especially significant because it is one of the first legal interpretations and applications of the guidelines established by the Petroleum Industry Act of 2021.
The court also determined that Baker Hughes and its affiliate engaged in discriminatory practices by denying the plaintiff redundancy benefits while compensating other sub-divisional heads in the Oilfield Equipment division.
The selective use of redundancy packages was deemed a clear violation of fair labour practices and equal treatment under the law.
Baker Hughes and Pressure Control Systems Nigeria Limited were ordered to:
Pay the plaintiff’s full redundancy payment in accordance with the terms and conditions of her employment contract, including applicable collective bargaining agreements and company policies.
Cover the plaintiff’s costs of action and pay 10% annual interest on all monetary awards beginning May 5th, 2025, until fully paid.
The exact monetary value of the awards is unknown at this time, pending additional calculations based on the plaintiff’s compensation package and the terms outlined in the court’s order.
However, legal analysts believe the total sum could be substantial, potentially reaching millions of Naira.
“This is a watershed moment for Nigerian labour law,” said Barrister Olufemi Adebayo, a well-known employment lawyer from Lagos who was not involved in the case.
“The court has sent a clear message that multinational corporations operating in Nigeria must comply with local laws and regulations, and that discrimination against Nigerian employees will not be tolerated.”
The ruling is expected to have a chilling effect on oil and gas companies, forcing them to reconsider their hiring practices and ensure compliance with the Petroleum Industry Act of 2021 and its accompanying guidelines.
Specifically, the court’s interpretation of the Guidelines for the Release of Staff is likely to serve as a key reference point for future redundancy exercises and employee terminations in the industry.
Baker Hughes has yet to release a formal statement regarding the decision. Multiple attempts to reach the company’s representatives in Nigeria and the United States for comment have failed.
The decision also sets a good precedent for future litigation involving demotion, resignation, redundancy, and discrimination in the Nigerian workplace.
Legal experts believe the decision will empower employees to assert their rights and seek redress for unfair labour practices, particularly in the highly competitive and often challenging oil and gas industry.
This case will undoubtedly be studied and cited for years to come, influencing the landscape of employment law and corporate accountability in Nigeria,
Leave a Reply