Honda Workers Move to Set Aside Court-Approved Merger Over Alleged Suppression of Facts

Wale Igbintade

A fresh legal battle has broken out at the Federal High Court in Lagos over the restructuring and proposed merger of Honda Manufacturing (Nigeria) Limited and Honda Automobile Western Africa Limited (HAWA), with workers seeking to set aside a court-approved decision which they claim was secured through material misrepresentation and procedural irregularities.

Justice Akintayo Aluko had on May 12, 2026, granted an ex parte order sanctioning the restructuring process.

However, the Executive Committee of the HAWA Autobate Union and the Local Management Team of HAWA have now approached the court in Suit No. FHC/L/MISC/262/2026, seeking to set aside the order and halt further implementation of the merger.

The applicants, through counsel Obafemi Oluwole, are alleging that the approval was obtained without full disclosure of ongoing labour disputes, stakeholder objections, and unresolved concerns surrounding the impact of the restructuring on employees.

They argued that the failure to disclose these issues amounted to “material suppression of facts” and procedural irregularities that, if properly placed before the court, would have influenced the grant of the initial order.

In a supporting affidavit deposed to by Comrade Afeez, President of the HAWA Autobate Union, the workers stated that they had repeatedly raised concerns with management over the merger process.

According to the affidavit, letters were sent on March 16, March 23, April 6, and April 9, 2026, highlighting fears over job security and the broader employment implications of the restructuring.

The union maintained that despite these repeated communications, the company proceeded to obtain judicial sanction without disclosing the existence of these objections or ongoing negotiations with workers.

The applicants further contended that the merger process proceeded without meaningful consultation, describing the exclusion of the union from key discussions as a violation of fair labour practice principles.

Beyond the issue of disclosure, the workers are also challenging the validity of the corporate process leading to the merger approval.

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

The union further alleges that 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 render the court’s earlier approval vulnerable to being set aside.

In their application, the workers are asking the court to set aside the ex parte order granted on May 12, 2026, which sanctioned the merger; direct the Corporate Affairs Commission (CAC) Registrar-General to suspend all further implementation steps relating to the merger scheme; and compel HAWA to reconvene proper stakeholder meetings in line with corporate governance requirements and existing court directives.

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

They are also seeking 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.

At the hearing of the ex parte application for interim reliefs, Justice Aluko, after listening to submissions by counsel Obafemi Oluwole, held that the justice of 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 also fixed July 7, 2026, for hearing of all motions and applications filed by the parties.