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.
What they are saying
The governor said payments would begin soon for verified beneficiaries, noting that arrangements for disbursement had already been finalised.
- “The modalities for the phased payments have been concluded, and disbursement shall commence in the weeks ahead, even as verification of claims continues,” he said.
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.
- “Your services and products have given our dear state its unique identity and opened doors of opportunities to households and communities,” Otti said.
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.
- “Fellow workers, the truth must be told: the Nigerian worker today is under siege, not from a foreign enemy but from twin monsters: insecurity and poverty that have grown fat on our neglect. These forces have become the greatest obstacles to decent work in our nation,” he said.
Get up to speed
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.
What you should know
The gratuity payment plan is part of broader efforts by the Abia State Government to address long-standing labour-related liabilities.
- In February 2026, the government announced plans to begin settling salary arrears owed to former Local Government councillors who served between 1999 and 2022, as part of a wider cleanup of inherited financial obligations.
- Earlier, in March 2024, Otti signed into law a bill that abolished pension payments to former governors and their deputies, ending a long-standing policy that had drawn criticism over the years.
The administration says these measures are aimed at freeing up resources, prioritising workers’ welfare, and restoring confidence in the state’s public finance management.
