Enugu approves N32 billion to clear gratuity arrears

The Enugu State Government has approved the payment of about N32 billion in outstanding legacy gratuities owed to retirees with the first tranche of N10 billion scheduled for release from next week.

The Secretary to the Enugu State Government (SSG), Chidiebere Onyia, disclosed this on Friday while briefing reporters at the Government House, Enugu, after the State Executive Council meeting.

At the briefing were the Commissioner for Information and Communication, Malachy Agbo; Commissioner for Lands and Urban Development, Chimaobi Okorie; and Commissioner for Human Development and Poverty Eradication, Benedett Okoli, a professor.

Mr Onyia, a professor, said the payment was part of the commitment of the Governor Peter Mbah administration to clear the inherited gratuity liabilities before the end of his first tenure.

He explained that the outstanding gratuities were liabilities inherited by the present administration.

The SSG pointed out that the state government had made provisions for the settlement of the gratuities in the 2026 budget, which had been approved by the Enugu State House of Assembly.

“This amount of money was put in the 2026 budget and approved by the Enugu State House of Assembly. So, it is in appropriation law,” he said.

The official emphasised that the decision was not a hastily conceived measure but part of a planned process to address the state’s outstanding obligations to retired workers.

According to him, the government suspended the existing gratuity verification process in December 2025 and established a verification committee to review records dating back to 2000.

He said the exercise was designed to establish the actual liabilities by examining retirees’ records and supporting documents, adding that the amount approved by the Executive Council was based on the outcome of the verification.

Mr Onyia said the first N10 billion tranche would be released to commence payments, after which subsequent tranches would follow until the entire verified liability of approximately N32 billion was cleared.

The SSG added that the administration was also addressing gratuity obligations at the local government level, where the outstanding exposure was estimated at more than N10 billion.

He said Governor Mbah had approved a meeting of the Economic Council to review the local government liabilities to enable local government retirees to start receiving their gratuities soon, alongside their counterparts at the state level.

He clarified that the current exercise focused on legacy gratuities, noting that the government had already commenced the payment of outstanding pension obligations following the verification of eligible beneficiaries.

“The gratuity owed to every retiree across the board from 2000 will be paid,” he said.

The official also stated that the verification committee, which he chaired, had reviewed the records of 66,783 persons across the workforce and pension-gratuity categories.

He explained that the verification exercise was necessary to guard against fraudulent claims and ensure that payments were made to legitimate beneficiaries.

READ ALSO: Enugu govt condemns attack on NDC members

He clarified that retirees, who had concerns with the outcome of the verifications were free to submit their complaints to the verification committee for further review.

Mr Onyia said that clearing the inherited gratuity liabilities was an important step towards ensuring that the state did not continue to accumulate unpaid retirement benefits for future administrations.

He reiterated that the Mr Mbah administration was committed to settling the verified legacy obligations while sustaining payments to eligible pensioners and putting in place a more sustainable pension system for the state.