Enugu State Government Commits N32bn to Clear Retirees' Legacy Gratuities

The Enugu State Government has given its nod for the disbursement of approximately N32 billion, representing outstanding legacy gratuities owed to its retired workforce. An initial sum of N10 billion is slated for immediate release. This significant development was announced by the Secretary to the State Government (SSG), Professor Chidiebere Onyia, through a statement issued by Governor Peter Mbah’s media office.

During a press briefing with Government House journalists on Friday, following a State Executive Council meeting, Professor Onyia elaborated on the decision. He was joined by Dr. Malachy Agbo, Commissioner for Information and Communication; Chimaobi Okorie, Commissioner for Lands and Urban Development; and Professor Benedett Ekwutosi Okoli, Commissioner for Human Development and Poverty Eradication.

Professor Onyia highlighted that this payment aligns with Governor Peter Mbah's administration's pledge to settle inherited gratuity liabilities before the conclusion of his first term in office. He clarified that these outstanding payments were accrued by previous administrations and inherited by the current government. Funding for this settlement has been provisioned in the 2026 budget, which received approval from 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," Onyia stated.

The SSG emphasized that this was not a spur-of-the-moment decision but rather a meticulously planned process aimed at addressing the state's longstanding financial commitments to its retired public servants. He recalled that the existing gratuity verification process was put on hold in December 2025, paving the way for the establishment of a dedicated committee to scrutinize records dating back to the year 2000. This rigorous exercise was designed to accurately ascertain the state's actual liabilities by thoroughly reviewing retirees' records and supporting documentation. The N32 billion approved by the Executive Council is a direct outcome of this comprehensive verification.

According to Professor Onyia, the initial N10 billion tranche will kickstart the payments, with subsequent tranches to follow until the entire verified liability of approximately N32 billion is fully liquidated. Beyond state-level obligations, the administration is also tackling gratuity commitments at the local government tier, where the estimated outstanding amount exceeds N10 billion. Governor Mbah has reportedly approved a meeting of the Economic Council to assess these local government liabilities, ensuring that retirees at this level will also begin receiving their gratuities soon, in parallel with their state counterparts.

Professor Onyia further clarified that the present initiative targets "legacy gratuities," noting that the government had already commenced payments for outstanding pension obligations following the verification of eligible beneficiaries. He affirmed, "The gratuity owed to every retiree across the board from 2000 will be paid."

The verification committee, chaired by Professor Onyia himself, reviewed the records of 66,783 individuals across various workforce and pension-gratuity categories. He explained that this verification was crucial to prevent fraudulent claims and guarantee that payments reached only legitimate beneficiaries. However, he also assured that any retiree with concerns regarding the verification outcome is welcome to submit their complaints to the committee for further review.

Concluding his remarks, Onyia stressed that clearing these inherited gratuity liabilities marks a vital step towards preventing the state from accumulating future unpaid retirement benefits for successive administrations. He reaffirmed the Mbah administration’s dedication to settling these verified legacy obligations, maintaining consistent payments to eligible pensioners, and establishing a more sustainable pension system for Enugu State. This announcement by the government comes amidst mounting criticism from opposition parties within the state and could potentially serve as a key element in the governor’s re-election campaign strategy.