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Court nullifies 15-year compulsory service rule for soldiers

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The National Industrial Court, NIC, sitting in Abuja, yesterday, nullified provision of the harmonised terms and conditions of service for officers of the Nigerian Armed Forces, HTACOS, which made it mandatory for soldiers to serve for a minimum of 15 years before being allowed to resign.

The court, in a judgement delivered by Justice Emmanuel Subilim, declared the provision as both oppressive and a gross violation of fundamental rights protected by the 1999 Constitution, as amended.

The verdict followed a suit, marked NICN/ABJ/25/2025, which a dissatisfied air force personnel, Flight Lieutenant J. A. Akerele, lodged before the court.

The claimant, who told the court that he was commissioned in 2013 as a pilot officer during the administration of former President Goodluck Jonathan, specifically challenged what he described as his “systematic persecution and victimisation,” by authorities of the Nigerian Air Force, NAF, after he applied to disengage from service.

He told the court that the then chief of air staff not only rejected his resignation letter but also declared him AWOL with a signal issued for his arrest.

Narrating his ordeal, the claimant, in an affidavit he filed in support of the suit entered on his behalf by a human rights lawyer, Inibehe Effiong, averred: “Before the 14th day of September 2013, I was selected based on merit as a final year student in the Nigerian Defence Academy in July 2013 to complete my flight training in the United States of America.

“During the course of my studies, allowances were no longer released for about (5) five months and I was abruptly recalled from the course in July 2014, and this led to my loss of seniority in rank, and I was not assigned to any unit for over a year.

“I switched five different career paths as a young officer in the Nigerian Air Force, and during this course, I was never promoted as compared to my course mates, as I spent 6 (six) years on the rank of a flying officer, instead of the standard 4 (four) years.

“I was posted to the National Air Defence Corps, and my specialty was changed to Air Traffic Control and subsequently to Unmanned Aerial Vehicles, UAV.

” I began my UAV training in August 2016, but it was terminated as the foreign contractors were not paid according to terms.

“After several months of waiting, my specialty was again changed to the intelligence arm of the air force.

“I was nominated for the intelligence course after serving in Base Services Group, BSG, Lagos from November 2019 to November 2020, but it was later cancelled and I was sent back to the UAV specialty.”

He told the court that the bitter experiences he was subjected to caused him “severe emotional distress, feelings of victimisation, and a lack of sense of direction.”

The claimant insisted that the ordeal adversely affected his mental well-being, saying he was traumatised.

“It was for these reasons and the enduring depression and trauma that I voluntarily resigned and disengaged from the Nigerian Air Force,” he added.

According to the claimant, after his letter for voluntary resignation was received, authorities of NAF subjected him to series of interviews and counselling.

He stated that his commander and the disposal officers who conducted the interviews and counselling sessions, supported his decision and recommended that he be allowed to disengage from service.

However, he told the court that despite the recommendations, the then chief of air staff rejected his letter of disengagement, insisting that he must put in at least 15 years of service before he could be eligible to voluntarily resign.

The claimant told the court that the air force boss, basing his decision on provisions of the HTACOS, ordered his immediate arrest.

Challenging the action, the claimant contended that the said HTACOS was not only a breach of section 306 of the 1999 Constitution, as amended, but also negated various subsisting court judgements.

He argued that as a public servant, he had the constitutional right to voluntarily resign from service.

Meanwhile, delivering his judgement in the matter yesterday, Justice Subilim faulted the decision of air force authorities, saying it was akin to forcing soldiers into “modern day slavery under the guise of national service.”

Declaring that members of the armed forces had the statutory right to retire or resign voluntarily, the court struck down the 15-year compulsory service requirement provided by the HTACOS.

It dismissed argument of the NAF that the claimant’s letter had “voluntary retirement” as its caption instead of resignation.

The court held that what was of utmost importance was the substance of the letter and not its form, adding that the word “resignation” as used in Section 306 of the 1999 Constitution, as amended, must be given a liberal and wider interpretation and not a restrictive interpretation, in line with decisions of the Supreme Court on principles governing the interpretation of the constitution.

Consequently, the court granted the claimant’s reliefs and declared his resignation from the NAF valid and effective from the date his letter was received.

The court equally issued an order of perpetual injunction, restraining the chief of air staff and NAF, who were the 1st and 2nd defendants in the matter, from arresting or detaining the claimant or compelling him to continue in military service.

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National Pension Commission (PenCom) changes price disclosure rule

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National Pension Commission (PenCom) has directed Pension Fund Administrators (PFAs) to discontinue the publication of daily unit prices for Retirement Savings Account (RSA) and Retiree Funds on their websites, replacing the requirement with a six-month disclosure of returns based on a three-year rolling average.

The directive was contained in a circular issued by the commission.

Under the new guideline, PFAs must stop implementing Section 2.0 (iv) of the Commission’s March 23, 2013 circular, which required them to display daily unit prices for the last seven days.

Instead, they are to publish on their websites the last six months’ rate of return — calculated as a 36-month compounded rolling average in line with the Circular for the Calculation and Reporting of Rate of Returns by Licensed Pension Fund Operators (LPFOs).

According to the commission, the rate of return must be clearly displayed on the homepage of each PFA’s website.

For instance, the six-month disclosure covering April to September 2025 would reflect the 36-month compounded returns ending in each of those months.

This has however raised transparency concerns in the pension industry.

The 2013 circular on Minimum Information to be displayed on PFA Websites formed part of PenCom’s transparency framework for the Contributory Pension Scheme.

The latest addendum modifies that requirement but does not remove PFAs’ obligation to disclose performance information.

Industry watchers say the development may reignite debate over the balance between long-term investment reporting and real-time transparency in Nigeria’s pension industry.

All enquiries on the addendum, the Commission said, should be directed to its Surveillance Department.

An industry analyst who does not want her name mentioned said the move could reduce contributors’ access to real-time performance data.

She said: “Daily unit prices allowed RSA holders to independently track short-term movements and detect fluctuations in fund valuation.

“With only a three-year rolling average now required, contributors will no longer see recent performance in isolation”, she noted.

The analyst added that while pension funds are long-term vehicles, removing daily disclosure raises concerns about information asymmetry.

“PFAs will still compute daily valuations internally. The issue is whether contributors should be denied access to data that already exists,” the analyst said.

However, another pension expert defended the directive, noting that pensions are structured for long-term accumulation and should be assessed over extended periods.

“A 36-month rolling average smooth’s out short-term volatility and provides a more accurate reflection of sustained performance,” the expert said, warning that excessive focus on daily fluctuations could encourage reactionary fund switching.

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Dollar rises in black market on Monday, traders quote new exchange rate

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Dollar edges higher against the naira in black market trading Dollar edges higher against the naira in black market trading

The United States dollar at the parallel market increased in value on Monday, Febuary 23 with traders quote at N1,375/$ as the new selling exchange rate.

The new rate is a slight depreciation for the naira when compared to N1,343 a dollar market closed on Friday, February 20, 2026.

Abdulahhi, a forex dealer, told Legit.ng that the new exchange rate follows renew demand in the market.

“I am currently selling dollars at N1,375/$1 and buying at N1,355/$1. The pound is trading at N1,845 to sell and N1,805 to buy, while the euro is also moving steadily in the market.

“It seems this week the dollar will return to over N1,400. I have been getting a lot of request.”

The fall of the naira comes as BDC operators continue to face difficulties in accessing dollars from commercial banks.

BDCs can get dollar

The apex bank had previously issued a circular allowing licensed BDCs to access foreign exchange through authorised dealers at the prevailing market rate.

Under the directive, each BDC is permitted to purchase up to $150,000 weekly, subject to Know Your Customer (KYC) requirements and due diligence checks, Punch reports.

Leadership reported that despite a policy announcement, some operators disclosed that no transactions have been completed under the new arrangement.

A BDC operator, who requested anonymity, said the directive remains largely unimplemented. According to him, the circular provides that disbursements will be made through settlement accounts, a provision that has raised operational concerns.

He questioned the feasibility of seamless, real-time transfers between domiciliary accounts across different banks, noting that such infrastructure may not yet be fully in place.

The operator added that while commercial banks appear supportive of the policy, many are still developing internal processes to align with the CBN’s directive.

He explained that BDCs are required to submit bid orders through their banks, which would then access the market on their behalf.

Naira in the official market

Meanwhile, in the Nigerian Foreign Exchange Market (NAFEM), the naira closed against the US dollar on Friday, February 20 at N1,346.32/$1 from N1,341.35/$1 a day earlier.

At the GTBank FX desk, the naira weakened by N7 against the dollar to quote N1,356/$1.

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