Current Assessment of Gratuity in Nigeria as of October 2026:
FEDERAL WORKERS — BIG CHANGE
For 22 years (since 2004 Pension Reform), federal civil servants did NOT receive gratuity. Only pension from RSA.
On March 5, 2026,
FEC approved new Exit Benefit Scheme:
Takes effect from January 1, 2026
Anyone who served minimum 10 years gets 100% of total annual emolument as one-time lump sum at retirement
Example: If you earned N200k monthly that is N2.4m annual, you get N2.4m gratuity and your normal monthly pension under CPS
First beneficiaries were State House staff retired in June 2026
This was a labor victory after a long struggle by ASCSN.
STATE WORKERS — MIXED, DEPENDS ON STATE
States are owing huge backlogs. Some are now paying:
Good performing states in 2026:
Abia:Started paying N61.8bn backlog from 2001-2025, starting with the oldest 2001-2010 batch. Payments through biometric platform
Akwa Ibom: Paid over N90bn out of N111bn inherited gratuity
Zamfara:,Cleared N13.6bn gratuity backlog of 13 years, plus approved N32,000 minimum pension
Bauchi: Flagged off N10bn payment for 1,700 pensioners, covering 2012-2013 batch first
Kaduna: Cleared about N18bn of inherited arrears, paid 9,683 beneficiaries N21.4bn since May 2023
Ondo: Paid N3.82bn to 985 retirees (2015-2020 batches) in September 2026
Federal workers retiring in 2026 get gratuity automatically, plus pension.
States should emulate the Abia template to create a transparent Gratuity Committee and publish liability.
States should include gratuity arrears in the Medium-Term Expenditure Framework like Abia did from 2026-2031.
Contributory Pension in for states and LGAs could be alternatives if dialogue with labour and civil society effectively.
What Governor Hyacinth Alia DID (why they celebrated):in Benue state
He inherited N163.7bn – N300bn gratuity and pension backlog from Ortom and past governments
Since June 2023, his government claims regular monthly pension payment for the first time in years. Pensioners who were paid 3 times in a year before now get monthly alerts
He promised gratuity within 1 week after retirement and pension after 3 months for anyone retiring under his own administration
His administration says: All those who retired from June 2023 to date have been paid their gratuities to clear way to face old backlog
Because of that, a group of pensioners did a solidarity thanksgiving rally in Makurdi in 2024, went to Government House, gave commendation letters, said life returned to pensioners, and even contributed money to buy his 2027 nomination form .
But arrears between 2000 to 2003 reactions by pensioners
They carried mats, bags, saying they will occupy Government House gate until death
Their placards: You have buried pensioners for paying gratuities during your time, June 2023 to date ONLY, Why?
They said backlog from year 2000 to 2023 (25 years) has not been paid, plus 38-62 months pension arrears for state and LG
They said pension still N2,000 per month instead of harmonized N40,000
Finance Commissioner admitted inherited liability is huge, government is paying within available resources
Benue is doing pay-as-you-go for new retirees, but old retirees are still waiting”model.
If you retired in 2024-2026: You celebrated.
Benue model is a lesson:
Start with new retirees to stop fresh backlog, then systematically face old backlog with published schedule like Abia did (2001-2010 first)
Experience on selective payments and how the system is supposed to work:
State Executive Council approves: Every month, release N200m, N500m, N1bn to Pension Commission / Office of Head of Service for gratuity.
The Pension Commission is supposed to pay according to First-In-First-Out: Who retired 2012 pays 2012, then 2013, in order.
How it actually works in (selective payment):
Money leaves Treasury, enters Pension Commission account — good.
But the list is manipulated. They skip the queue. Instead of paying Mr. Audu who retired in 2012, they pay:
A Permanent Secretary who retired last month and knows the Governor
A party chairman’s brother
Someone who agrees to give 10% kickback to desk officer
Someone who has a strong union godfather
So the monthly release is announced on radio as an achievement, but on the ground, genuine old retirees still die without alert.
My Assessment:
It is not payment, it is patronage.
Selective payment turns gratuity from right to privilege. Retiree must lobby, protest, or bribe to get his own entitlement.
It breaks Public Finance Law.
Contributory Pension Law says gratuity must be paid based on date of retirement and
verification, not based on political consideration.
Selective payment is abuse of the office.
It creates double suffering.
The state government will say we released N10bn” — Governor gets praise. But when you go to the pension board, they say “your file has a query”. So both the government and pensioners blame each other, while money disappears.
What must be done for transparency
To show monthly figures to NLC and NUP to stop strike
Publish the list:and Every month, the Pension Commission must publish names, year of retirement, and amount paid — on notice board and online, not secret.
Biometric FIFO: Abia did it right — linked payment directly to TSA with biometric validation, oldest first. No manual list.
Civil Society Seat: and Demand one CSO observer and one NUP observer in the Gratuity Payment Committee.
To God be the glory
– Benjamin Ibrahim writes from Lokoja, Kogi state.
+2348069596250
