Court Orders Radix Pension To Pay Former MD Kunle Adeboye N57 Million And $21,000 In Backlog

Court Orders Radix Pension To Pay Former MD Kunle Adeboye N57 Million And $21,000 In BacklogThe National Industrial Court of Nigeria has ordered Radix Pension Managers Ltd., a licensed Pension Fund Administrator (PFA) regulated by the National Pension Commission (PenCom), to pay its former Managing Director, Mr. Kunle Jeffery Adeboye, a total of N57 million and $21,000 in unpaid salary, allowances, and severance entitlements.

The court delivered the judgment on November 19, 2024, with Justice R.H. Gwandu granting all 14 reliefs sought by Adeboye in his suit, marked NICN/LA/390/2021. Adeboye, who voluntarily resigned from his position in 2021, had taken legal action after Radix Pension Managers failed to settle his outstanding entitlements, including salary arrears and severance pay.

In his suit, Adeboye, represented by the law firm of Femi and Funmi Falana (SAN), argued that Radix Pension’s refusal to fulfill his contractual obligations, despite repeated attempts to resolve the matter, was a breach of his employment contract. He sought several declarations, including the entitlement to severance packages and an order for the payment of N57,119,545.95 and $21,000 for unpaid dues, as well as interest and legal costs.

The court upheld all of Adeboye’s claims, ordering Radix Pension Managers to pay the total sum of N86.3 million, which includes the backlogged salary, allowances, severance entitlements, and the legal costs of N3 million for pursuing the suit. The court also ordered interest of 25% on the amount from the date of filing the suit until full payment is made, as well as 10% monthly interest on the judgment sum from the date of the ruling.

Following the ruling, Mr. Taiwo Olawanle of Falana Chambers, who represented Adeboye, described the judgment as a victory for justice, particularly within the National Industrial Court. He noted that the case could have been avoided if Radix Pension had honored its obligations without requiring litigation. Olawanle also emphasized that Radix Pension had ignored multiple attempts by Adeboye’s legal team to resolve the issue amicably, forcing the matter to court.

A former employee of Radix Pension, who had a similar experience with the company, shared her frustration over the company’s dismissive attitude, often responding with a “go to court!” mentality. She recalled how, despite assurances to the Pension Commission, it took her five years and a class-action lawsuit to receive her severance pay in installments.

This case has drawn attention to the need for stronger regulatory oversight by PenCom to ensure that companies within the pension industry maintain high standards of corporate governance and ethical practices. The former employee pointed out that the Contributory Pension Scheme, a flagship initiative of the Nigerian government, is meant to ensure better employee relations, and the behavior of companies like Radix undermines its integrity.

The National Industrial Court’s verdict is seen as a significant step in enforcing higher standards for employee treatment across industries in Nigeria. It also serves as a reminder to both employers and regulatory bodies of the importance of honoring contractual obligations and maintaining transparency in employee engagements.

For more information on this article and other related posts from Bushradiogist, please join our WhatsApp channel by clicking this link https://whatsapp.com/channel/0029VaUumOODTkK7AZL1Fw3o. For advertisement inquiries only, kindly send a message to 090 1907 0863 on WhatsApp.