Enugu LGs to Begin Payment of 25-year Gratuity Backlog

Local governments in Enugu State will begin clearing gratuity arrears owed to retired council workers dating back to the year 2000, with 10 percent of their monthly allocations set aside for the payments from October.

Ferdinand Ukwueze, deputy chairman of the Association of Local Governments of Nigeria (ALGON) in Enugu State and chairman of Igboeze South Local Government Area, announced the decision on Monday after the 40th meeting of the Enugu State Economic Planning Commission, chaired by Governor Peter Mbah.

According to a statement from the governor’s media office, the councils will continue making the deductions until all outstanding gratuities, accumulated over more than 25 years, are paid.

Ukwueze described the move as an extension of the state government’s efforts to settle long-standing retirement benefits for former public servants at both state and local government levels.

He said, “One of the high points of today’s meeting is that, in a very historic manner, the local government system in Enugu State has taken the bold step of aligning with the state’s policy, particularly with respect to alleviating the hardship of the masses.

“In line with the payment of the legacy gratuity that the state government embarked on a couple of days ago, the local governments have also decided at the Economic Planning Commission meeting to step into that arrangement to make sure that we clear all the gratuity inherited by us.”

He said the local governments had agreed to adopt the same approach as the state government to address the inherited debts and ease the financial difficulties faced by retirees.

The announcement follows the Enugu State Executive Council’s approval, about a week earlier, of more than N32 billion to settle outstanding gratuities owed to retired state government workers, with some arrears also dating back to 2000.

Ukwueze said the councils’ contributions would begin in October and continue until the debts were fully settled, assuring former local government employees that they would receive their entitlements. 

“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.

“The decision is that starting from this month, 10 per cent of our monthly allocation will be dedicated to that responsibility until it is cleared. So, once we start it, there is no going back. Every worker who worked in our local governments will have access to this entitlement,” Ukwueze stated.

“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 reiterated.

“The essence of it, once again, is to put smiles on the faces of the masses, especially those of them who spent their youthfulness serving the public in our various local government areas,” he said.

He also pledged the continued support of local governments for the Mbah administration and its collaboration with relevant stakeholders to sustain peace and security across the state.

“Enugu State is safe. Enugu State is peaceful. And we will continue to partner with our governor and security agencies to keep it so,” he added.