17 Local Government Councils Earmark 10% of Monthly Allocations to Settle Outstanding Retirement Benefits Dating Back to 2000.
Enugu Media Village (EMV), the Most Updated Online News Platform — October 31, 2026.
THE 17 LOCAL Government Councils in Enugu State have commenced the process of addressing outstanding gratuity arrears owed to retired council workers, with the accumulated liabilities reportedly dating back to the year 2000.
The development follows a resolution by the Association of Local Governments of Nigeria (ALGON), Enugu State Chapter, to dedicate 10 per cent of the councils’ monthly allocations towards settling the inherited retirement obligations until the outstanding payments are fully cleared.
The Deputy Chairman of Enugu State ALGON and Executive Chairman of Igboeze South Local Government Area, Hon. Ferdinand Ukwueze, disclosed the decision on October 19, 2026, while briefing Government House correspondents at the end of the 40th meeting of the Enugu State Economic Planning Commission, chaired by Governor Peter Ndubuisi Mbah.
10% OF MONTHLY ALLOCATIONS DEDICATED TO GRATUITY PAYMENTS
Ukwueze explained that the 17 local government councils had resolved to commit 10 per cent of their monthly allocations to clearing the accumulated gratuity arrears, beginning from October 2026.
According to him, the arrangement would remain in place until all outstanding obligations owed to eligible retired local government workers are settled.
He described the decision as a collective commitment by the councils to address the financial difficulties faced by former public servants who had spent their productive years serving their respective local government areas.
He further explained that the initiative aligns with the state government’s ongoing efforts to settle inherited gratuity liabilities owed to retired workers.
GRATUITY ARREARS DATE BACK TO THE YEAR 2000
The ALGON Deputy Chairman clarified that the outstanding local government gratuities cover more than 25 years, dating back to 2000.
He noted that the decision was intended to ensure that retirees who had waited for years to receive their legitimate entitlements would be accommodated under a structured payment arrangement.
The initiative is expected to provide a framework for addressing the accumulated obligations while ensuring that future retirement liabilities do not continue to build up.
STATE GOVERNMENT APPROVES ₦32 BILLION FOR RETIRED WORKERS
The local government decision comes shortly after the Enugu State Executive Council approved approximately ₦32 billion for the settlement of outstanding gratuities owed to retired state government workers.
The Secretary to the State Government, Prof. Chidiebere Onyia, disclosed that an initial ₦10 billion tranche was scheduled for release to commence the state-level payments, with subsequent disbursements expected to clear the verified liabilities.
He also disclosed that outstanding gratuity obligations at the local government level exceeded ₦10 billion, prompting further discussions on a sustainable settlement arrangement.
The state and local government payment initiatives are separate components of the broader effort to address inherited retirement obligations.
COMMITMENT TO RETIREES’ WELFARE
Ukwueze reaffirmed the commitment of the local government chairmen to supporting measures aimed at improving the welfare of retirees and strengthening public service delivery across the state.
He emphasised that the decision was particularly important to former council workers who dedicated several years of service to their communities but had yet to receive their full retirement entitlements.
The development represents a new payment framework for addressing long-standing gratuity obligations across Enugu’s 17 local government areas.
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