NEW NIGERIA DEVELOPMENT COMPANY LIMITED v. DANIEL UGBABE UGBABE
SUPREME COURT OF NIGERIA
(ARIWOOLA; AUGIE; OGUNWUMlJU; ABOKI; ABUBAKAR, JJ.SC)
Daniel Ugbabe Ugbabe (the Respondent) in 1972, was employed by Ahmadu Bello University. Later in 1976, he transferred his service to the Benue Polytechnic, Ugbokolo, and in 1980, he transferred his service back to Ahmadu Bello University as the Bursar of the University. After serving 16 years at both academic institutions, the Respondent 1988, was appointed the Chief Executive Officer and Group Managing Director of New Nigeria Development Company Limited
(the Appellant) wherein he served a further 4 years with the Appellant before retirement in 1992, thus serving a total of twenty years in the public service. When the Respondent retired, the Appellant computed and paid pension to the Respondent only for the four years period of the Respondent's service with the Appellant, but the Respondent sought payment of gratuity and pension on the basis of 20 years of service. After several failed attempts at reconciling their differences, the Respondent commenced an action at the High Court (trial Court). At the conclusion of trial at the trial Court, a considered judgment was delivered against the Respondent. Dissatisfied with the judgment of the trial Court, the Respondent appealed to the Court of Appeal (lower Court). The lower Court set aside the judgment of the trial Court and delivered judgment in favour of the Respondent. Also dissatisfied by the decision of the lower Court, the Appellant
appealed to the Supreme Court. The sole issue for determination was: Whether the Appellant was bound by the provisions of the Pensions Act and the various Federal Government Circulars and Regulations rather than solely on its Personnel Administrative Manual and Conditions of Service in the computation and payment of the retirement benefit of the respondent, in the circumstances of this case.