Enugu LGs Begin Payment of 25-Year Gratuity Backlog

Local governments in Enugu State will begin addressing more than 25 years of unpaid gratuities owed to retired council workers, with 10 per cent of their monthly allocations dedicated to clearing the backlog.

The Deputy Chairman of the Association of Local Governments of Nigeria (ALGON), Enugu State chapter, Ferdinand Ukwueze, disclosed this on Monday after the 40th meeting of the Enugu State Economic Planning Commission, chaired by Governor Peter Mbah.

Ukwueze, who is also Chairman of Igboeze South Local Government Area, said the decision aligned local councils with the state government’s ongoing efforts to settle outstanding retirement benefits.

According to him, the deductions from the councils’ monthly allocations would commence in October and continue until the outstanding gratuities were fully paid.

“Beginning from this month, we are going to key into what the state government has started implementing already by making sure that we offset those debts,” Ukwueze said.

He added that the councils had agreed to dedicate 10 per cent of their monthly allocations to the payments, describing the move as a commitment to ensuring that former local government employees receive their entitlements.

“For clarity, the arrears are from the year 2000, but, as I said, we are going to clear all the over 25-year legacy gratuities,” he said.

Ukwueze described the decision as a significant step towards improving the welfare of retirees who spent their working lives serving local communities.

The announcement comes days after the Enugu State Executive Council approved approximately ₦32 billion to settle outstanding gratuities owed to retired state civil servants. The state government said an initial ₦10 billion tranche would be released to begin the payment process.

The state-level and local government initiatives are part of efforts by the Mbah administration to address inherited retirement liabilities and reduce the financial hardship faced by pensioners.

The local government gratuity backlog is estimated to exceed ₦10 billion, according to previous government disclosures.

Ukwueze said the councils were committed to sustaining the arrangement until the arrears were cleared, ensuring that eligible retirees could access the benefits owed to them.