The Abia State Government has set aside more than N10 billion in its 2026 budget to offset over two decades of unpaid gratuities owed to retired civil servants.

The announcement was made on Friday at the 2026 International Workers’ Day celebration in Umuahia, where Governor Alex Otti, represented by his deputy, Ikechukwu Emetu, outlined the administration’s commitment to settling the outstanding liabilities.

The allocation follows criticism earlier in 2025 over a Memorandum of Agreement signed between the state government and the Abia chapter of the Nigeria Union of Pensioners, which required retirees to waive part of their gratuities to facilitate the payment of pension arrears.

The governor stated that disbursement would commence shortly for beneficiaries who have completed verification, adding that all necessary arrangements for payment have been concluded.

“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 commended workers for their resilience and dedication, describing them as vital to the state’s development and noting that their contributions have defined Abia’s character while creating livelihoods for countless families.

“Your services and products have given our dear state its unique identity and opened doors of opportunities to households and communities,” Otti said.

In his remarks, the Chairman of the Nigeria Labour Congress in the state, Ogbonnaya Okoro, cautioned that deteriorating economic and security conditions are eroding the standards of decent work in Nigeria, describing the environment as increasingly harsh 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.

Otti recently indicated that he may reconsider the controversial Memorandum of Agreement under which Abia retirees relinquished N20 billion of the N30 billion pension arrears inherited from the previous administration.

The governor inherited pension arrears estimated at about N30 billion, as well as an unspecified amount of outstanding gratuities.

However, the matter triggered public outrage in April last year after Otti announced that the arrears had been settled following a N10 billion payment, based on an agreement in which retirees were to forfeit the remaining N20 billion.

For several months, the government maintained that the agreement had resolved the pension liabilities, while also accusing some union leaders of reneging on the terms.

The gratuity payment initiative forms part of the Abia State Government’s wider efforts to resolve long-standing labour-related obligations.