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Applicability of Statute of Limitation Laws to Employment Contract: Review of the Court of Appeal decision in the case of First Bank of Nigeria Limited v Mr. Godson Ikechukwu Nkume

Introduction

As a result of the intricate nature of employment contracts, there have been numerous arguments around the application of the statute of limitation to a cause of action arising from an employment dispute. Lawyers have questioned the application of The Public Officers Protection Act (“POPA”) and the Limitation Laws of various states in relation to employment contracts. There have been unsettled dust around the Nigerian Court’s position on the applicability of the limitation laws to employment contracts.

Historical Trajectory: various NICN’s positions on the applicability of limitation laws on employment contracts.

 In 2019, addressing the issue of applicability of limitation law to employment contract, the Supreme Court held in the case of National Revenue Mobilization Allocation & Fiscal Commission & Ors (NRMAFC) v Ajibola Johnson & Ors (“Ajibola’s Case”) that Section 2 of the Public Officer Protection Act (“POPA”) does not apply in cases of recovery of land, breach of contract or claims for work and labor done.
Therefore, POPA does not apply to cases of employment contracts. Following the decision on the Ajibola’s case, the NICN in determining a Preliminary Objection on the issue of applicability of limitation law in the case of Lilian Nnenna Akumah v First Bank of Nigeria Plc (“Akumah’s case”) held that while the Ajibola’s case was on the applicability of POPA to employment contracts, the Akumah’s case was on the applicability of limitation law of Lagos State on employment contract.