The Abia State Government has earmarked over N10 billion in the 2026 fiscal year to clear more than 20 years of accumulated gratuities owed to retired workers.
The disclosure was made on Friday during the 2026 International Workers’ Day celebration in Umuahia, where Governor Alex Otti, represented by his deputy, Ikechukwu Emetu, addressed workers on the administration’s plans.
The move comes months after Otti faced backlash in early 2025 over a controversial Memorandum of Agreement (MoA) signed with the Abia chapter of the Nigeria Union of Pensioners (NUP), which required retirees to forfeit part of their gratuities in exchange for clearing pension arrears.
The governor said payments would begin soon for verified beneficiaries, noting that arrangements for disbursement had already been finalised.
He also praised the resilience and contribution of workers, describing them as central to the state’s growth, adding that their efforts have shaped Abia’s identity and created opportunities for many households.
On his part, the Chairman of the Nigeria Labour Congress in the state, Ogbonnaya Okoro, warned that worsening economic and security conditions are undermining decent work in Nigeria, describing the situation as increasingly difficult for workers.
Governor Otti had recently indicated a willingness to revisit the controversial MoA under which Abia retirees forfeited N20 billion out of the N30 billion pension arrears owed by the previous administration.
He said he would “take another look” at the agreement signed between his government and the leadership of the NUP, which also required retirees to forfeit their unpaid gratuities.
The governor inherited pension arrears estimated at N30 billion, alongside an unspecified amount in unpaid gratuities.
However, the issue sparked public outrage in April last year when Otti announced that pension arrears had been cleared after paying N10 billion, based on an agreement for retirees to forfeit the remaining N20 billion.
For months, the government defended the agreement, insisting the pension issue had been resolved, while also accusing some union leaders of backtracking on the terms.
The gratuity payment plan is part of broader efforts by the Abia State Government to address long-standing labour-related liabilities.
The administration says these measures are aimed at freeing up resources, prioritising workers’ welfare, and restoring confidence in the state’s public finance management.
