The Lagos division of the National Industrial Court of Nigeria (NICN) has ruled in favour of former Managing Director of Capital Oil Limited, Dr. Olatunji Sobodu, declaring that his resignation from the company in 2014, was wrongful and in breach of the terms of his employment.
Justice S.A. Yelwa in a judgment delivered in the suit numbered NICN/LA/186/2017, on June 9, 2026, held that the circumstances surrounding Sobodu’s resignation amounted to an unfair labour practice and that the company failed to treat him fairly.
Sobodu had approached the court in 2017 seeking several declarations and monetary claims against Capital Oil, alleging that he was forced to resign under pressure and denied salaries, allowances, incentives and other benefits due to him as Managing Director and Chief Executive Officer.
The claimant told the court that he was appointed Managing Director in January 2012 with an annual remuneration package valued at N30 million. He maintained that he played a significant role in reviving the fortunes of the company through strategic business partnerships and financial restructuring initiatives.
According to him, his resignation was procured through undue influence and pressure from officials linked to the Living Faith Church, which nominated him to the board of the company. Adding that despite repeated demands, Capital Oil failed to pay outstanding salaries and benefits due to him following his exit.
Capital Oil, however, denied the allegations and insisted that Sobodu’s resignation was voluntary and necessary to protect the company from financial losses allegedly arising from his management decisions.
The company also challenged the authenticity of some of the benefits claimed by the former executive and filed a counterclaim seeking damages and interest.
During the trial, the defendant failed to call witnesses or prosecute its defence and counterclaim despite being served with hearing notices. The court consequently relied on the unchallenged evidence presented by the claimant.
Delivering judgment in the suit, Justice Yelwa held that the claimant had successfully established his case on the balance of probabilities. The court declared that the resignation obtained from Sobodu was wrongful and constituted a breach of his employment contract.
The judge consequently ordered Capital Oil to pay Sobodu N11.49 million as outstanding salary arrears and N5 million as payment in lieu of three months’ notice, bringing the total monetary award to over N16.49 million.
In addition, the judge awarded N500,000 as costs against Capital Oil and directed the company to satisfy the judgment within 30 days or face a 10 per cent post-judgment interest charge until full payment is made.
The judge, however, declined Sobodu’s claim for N49.5 million in incentives, allowances and benefits, holding that the claim was not specifically pleaded and strictly proved as required by law.