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Honda workers ask court to block merger over alleged cover-up

by Usman Kadri
May 20, 2026
Reading Time: 2 mins read
Honda workers ask court to block merger over alleged cover-up
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A fresh legal battle has broken out at the Federal High Court in Lagos over the internal restructuring and merger of Honda Manufacturing (Nigeria) Limited and Honda Automobile Western Africa Limited (HAWA).

The court, presided over by Justice Akintayo Aluko, granted an ex parte order on May 12, 2026, sanctioning the restructuring. But the Executive Committee of the HAWA Autobate Union and the Local Management Team of HAWA have now filed a motion in Suit No. FHC/L/MISC/262/2026, through their counsel Obafemi Oluwole, Esq., asking the court to set aside that order.

The applicants allege that the merger approval was obtained through material misrepresentation, suppression of facts, and procedural irregularities, specifically, that HAWA failed to disclose ongoing disputes and stakeholder objections to the court before obtaining its sanction.

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In a supporting affidavit deposed to by Comrade Afeez, President of the HAWA Autobate Union, the applicants state that workers wrote to management on March 16, March 23, April 6, and April 9, 2026 raising serious concerns about job security and the employment implications of the merger. Despite these unresolved negotiations, the company allegedly proceeded to secure judicial approval without disclosing them to the court.

The applicants further contend that no valid statutory meetings were convened in line with the company’s Articles of Association or the court’s earlier order of April 8, 2026, and that the union received neither notice nor invitation to any such meetings.

Among the reliefs sought, the applicants are asking the court to set aside the May 12, 2026 sanction order, direct the CAC Registrar-General to stay all further implementation of the merger scheme, and compel HAWA to reconvene stakeholder meetings in proper compliance with corporate governance procedures.

The Local Management Team has also filed a separate motion seeking to be joined in the suit, and is asking the court for an interlocutory injunction restraining both the CAC and the Honda entities from taking any further steps to implement the scheme pending the outcome of the application.

Justice Aluko, upon hearing Barrister Obafemi who move the applicants’ exparte application for interim injunction, held that the justice of the case warrant that the merger be halted, pending the hearing and determination of all applications.

The judge thereafter fixed July 7, 2026 for hearing of all applications.

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