Facts:

The story of the respondent, as plaintiff, is that he started his career in the public service in Ahmadu Bello University, Zaria (ABU) in 1972. He subsequently transferred his service to Benue State Polytechnic, Ugbokolo where he served from 1976 to 1980. Again, he transferred his service back to ABU and worked in the Bursary Department as a Bursar. The appellant in 1988 offered him (the respondent) an appointment as its Chief Executive Officer and Group Managing Director. The respondent accepted this offer on the condition that his service with ABU be transferred to the appellant for continuity of his service for the purpose of computation and payment of his gratuity and pensions. This request was made because the appellant is an “Approved Service” specified by a Federal Government Circular which allows public servants to transfer their years of service to it. According to the respondent, the appellant confirmed his appointment and accepted his transfer of 16 years of service from ABU. After 4 years, the respondent was relieved of his duty. He retired effectively on the 19th of August, 1992. In total, the respondent spent 20 years in Public Service working for both ABU and the appellant. In computing the respondent’s gratuity and pension, the appellant insisted that it will only pay to the respondent, the 4 years he served as its Chief Executive Officer and nothing more. After several failed attempts at reconciling their differences, the Respondent commenced an action at the High Court (trial Court) via a Writ and Statement of Claim.

Dissatisfied with the judgment of the trial court, the respondent appealed to the Court of Appeal and in its judgment, the Court of Appeal allowed the appeal, set aside the judgment of the trial court and granted the reliefs sought by the respondent.

Dissatisfied by the judgment of the Court of Appeal, the appellant appealed to the Supreme Court.