Nigerian State Clears $28M Gratuity Backlog to Retirees

Thousands of retired workers in Katsina State, Nigeria, are finally getting the money they earned after years of waiting for their gratuity payments.

Governor Dikko Umaru Radda announced this week that his administration cleared an estimated 45 billion naira (about $28 million) in overdue payments to retirees and families of workers who died while still employed. The payouts came after the government saved 19 billion naira ($11.8 million) from its pension fund through better management between June 2023 and December 2025.

The state chairman of the Nigeria Union of Pensioners, Surajo Abdu Daura, led a delegation to thank the governor personally at the Government House in Katsina. His members had watched their gratuity debts pile up for years while they struggled in retirement.

Governor Radda explained that creating a Pension Transition Board and Pension Bureau helped the state handle retirement funds more transparently. The smart management even generated an additional 668 million naira ($415,000) in investment returns during the same period.

"This is in recognition of the sacrifices and dedication of our workers who spent their productive years serving the development of Katsina State," Governor Radda told the pensioners. "We owe them dignity in retirement and security for their families."

The government used leftover funds after covering salaries and operating costs to clear the massive backlog. Now retirees can access money they've been owed for years without the state taking on new debt.

The Ripple Effect

The payment clears isn't just helping individual retirees put food on the table. It's restoring faith that government promises about retirement security actually mean something.

The state also enrolled pensioners into a healthcare program, though union leaders say it needs improvements to work effectively. They've asked for help with uniform pension deductions that currently take the same amount regardless of what level someone worked at, plus renovations to their union office.

Nasiru Wada, vice chairman of the Nigeria Labour Congress in Katsina State, called clearing the gratuity backlog "a landmark achievement." His organization pledged continued support for policies that protect workers and retirees across the state.

The model shows other Nigerian states struggling with pension debts that smart financial management can break the cycle of broken promises to retired public servants.

When workers see retirees treated with dignity, everyone benefits from knowing their own years of service will be honored when their time comes.