Honda Workers Seek to Block Court‑Approved Merger Over Alleged Suppression of Facts

Wale Igbintade

A new legal dispute has arisen at the Federal High Court in Lagos concerning the restructuring and proposed merger of Honda Manufacturing (Nigeria) Limited and Honda Automobile Western Africa Limited (HAWA). Workers are seeking to invalidate a court‑approved decision they allege was obtained through material misrepresentation and procedural irregularities.

Justice Akintayo Aluko granted an ex parte order authorising the restructuring on 12 May 2026.

Now, the Executive Committee of the HAWA Autobate Union and HAWA’s Local Management Team have filed Suit No. FHC/L/MISC/262/2026, requesting that the order be set aside and that further implementation of the merger be halted.

Represented by counsel Obafemi Oluwole, the applicants claim that the court approval was secured without full disclosure of ongoing labour disputes, stakeholder objections, and unresolved concerns about the merger’s impact on employees.

They argue that the omission of these matters constitutes “material suppression of facts” and procedural irregularities that would have affected the court’s decision if properly presented.

In an affidavit sworn by Comrade Afeez, President of the HAWA Autobate Union, the workers state that they repeatedly raised concerns with management about the merger process.

The affidavit lists letters sent on 16 March, 23 March, 6 April, and 9 April 2026, expressing fears over job security and the broader employment implications of the restructuring.

The union contends that, despite these communications, the company obtained judicial sanction without disclosing the existence of these objections or ongoing negotiations with workers.

Applicants further claim that the merger proceeded without meaningful consultation, describing the exclusion of the union from key discussions as a breach of fair labour practice principles.

Beyond disclosure issues, the workers challenge the validity of the corporate process that led to the merger approval.

They assert that no statutory meetings were convened in accordance with the company’s Articles of Association or the court order issued on 8 April 2026.

The union alleges it was neither notified nor invited to any such meetings, despite being a key stakeholder in the organisation.

These alleged lapses, the applicants say, undermine the legality and fairness of the restructuring process and make the court’s earlier approval vulnerable to being set aside.

In their application, the workers ask the court to: (1) set aside the ex parte order granted on 12 May 2026; (2) direct the Corporate Affairs Commission (CAC) Registrar‑General to suspend all further implementation steps related to the merger scheme; and (3) compel HAWA to reconvene proper stakeholder meetings in line with corporate governance requirements and existing court directives.

In a parallel motion, HAWA’s Local Management Team has applied to be joined as parties in the suit, arguing that their participation is necessary for a fair determination of the dispute.

They also seek an interlocutory injunction restraining both the CAC and the Honda entities from taking further steps to implement the merger pending the hearing of the substantive application.

During the hearing of the ex parte application for interim reliefs, Justice Aluko, after hearing counsel Oluwole, determined that the case warranted a temporary halt to the merger process.

The court subsequently ordered that implementation of the restructuring be suspended pending the determination of all pending applications in the matter.

The judge set 7 July 2026 for the hearing of all motions and applications filed by the parties.