The Enugu State Government has approved the payment of N32 billion in outstanding gratuity arrears owed to retired civil servants dating back to 2000, with an initial N10 billion scheduled for disbursement next week.
The approval forms part of Governor Peter Mbah’s efforts to settle inherited retirement obligations and address longstanding payment delays affecting pensioners across the state.
The Secretary to the State Government (SSG), Prof. Chidiebere Onyia, disclosed this on Friday, October 16, 2026, while briefing journalists following the State Executive Council meeting in Enugu.
According to the News Agency of Nigeria (NAN), Onyia said the government had completed a comprehensive verification exercise to establish the actual amount owed to retirees over the past 26 years.
Enugu outlines N32 billion payment plan
Onyia explained that the state government would release N10 billion monthly between October and December 2026 as part of a phased settlement arrangement.
He noted that the payment structure was designed to ensure that verified retirees received their outstanding benefits without further delays.
- “Once the first N10 billion is exhausted, another N10 billion will be released, followed by the third tranche until the outstanding arrears are cleared,” he said.
The SSG disclosed that the N32 billion obligation had already been captured in the state’s 2026 budget and approved by the Enugu State House of Assembly.
He attributed the accumulation of arrears to years of irregular and unstructured gratuity payments under previous administrations.
Local Government Gratuity Arrears Exceed N10 Billion
Beyond the state government’s gratuity obligations, Onyia disclosed that outstanding local government gratuity arrears were estimated at over N10 billion.
- He said Governor Mbah had approved a meeting of the State Economic Council to review the liabilities and determine an appropriate settlement framework.
- One proposal under consideration involves deducting N1 billion monthly from local government funds to settle the outstanding obligations over approximately 10 months.
- The government has also verified 66,783 serving and retired workers to eliminate irregularities and ensure transparency in the payment process.
Retirees who experienced difficulties during verification have been advised to submit complaints to the committee operating under the Office of the Secretary to the State Government.
Onyia maintained that the administration had continued paying pensions and gratuities to workers retiring under the current government while addressing inherited liabilities.
Enugu’s Previous Pension Payment Efforts
The latest approval follows previous efforts by the Enugu State Government to address outstanding pension obligations inherited from earlier administrations.
- In August 2024, Nairametrics reported that the Enugu State Government commenced payment of pension arrears to 7,109 verified local government retirees, as part of measures to clear outstanding retirement benefits.
- However, payment delays remained a concern. In October 2024, retirees in Enugu, Anambra and Ebonyi states complained about delays in accessing their pensions, with some reporting waits of up to two years after retirement.
The latest commitment also comes amid improved revenue generation in Enugu. In February 2026, Nairametrics reported that the state generated N406.8 billion in internally generated revenue in 2025, achieving approximately 80% of its annual target. The increase followed reforms aimed at expanding the state’s revenue base and reducing dependence on federal allocations.