Court Declares Termination “Wrongful” And “Breach Of Employment Contract” In Baker Hughes Discrimination Case
*Orders Companies To Pay “Full Redundancy Payment” And 10% Annual Interest
Baker Hughes, a U.S. multinational oilfield services company, and its Nigerian affiliate, Pressure Control Systems Nigeria Limited, were found guilty of discriminatory practices and unlawful termination of employment in a landmark decision issued 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 that will undoubtedly reverberate throughout the industry.
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:
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.
However, sources familiar with the situation say the company is considering its options, including a possible appeal to a higher court.
