The debate surrounding the restoration of gratuity payments to retired workers has gained significant momentum, with organised labour groups calling for urgent action from the government. This issue was a key focus during the recent May Day celebration in Abuja, where leaders of the Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) addressed workers, government officials, and diplomats.
Both NLC President Joe Ajaero and TUC President Festus Osifo highlighted the importance of reinstating gratuity payments for public servants, which were halted following the 2004 Pension Reform Act (PRA). The unions argued that this benefit, once a part of public service employment, should be reintroduced. They further called for an immediate review of outstanding allowances, pensions, and gratuities, as well as an increase in the retirement age for public servants. They noted that while political office holders continue to receive gratuities, long-serving public servants are being deprived of the same benefits.
Additionally, the unions emphasized the need for an upward revision of the retirement age to 65 years, or 40 years of service, aligning all public servants with the current benefits for teachers, health professionals, and judges. The leaders also called for an end to degrading verification processes in the public service and a national minimum pension that guarantees dignity in retirement, alongside automatic pension adjustments to reflect inflation.
The issue of gratuity payments has been a point of contention since the enactment of the PRA, which shifted public servants to the Contributory Pension Scheme (CPS), effectively ending gratuity payments. However, leaders argue that the PRA does not explicitly abolish gratuities. They point to Section 173 of the 1999 Constitution, which guarantees both pension and gratuity for public servants. Furthermore, they highlighted a glaring inconsistency in the treatment of political office holders who are entitled to gratuities despite serving shorter terms, while public servants who dedicate decades to their roles are denied this benefit.
In a statement, TUC State Council Chairman Gbenga Ekundayo criticized the government’s stance, calling the refusal to pay gratuities a violation of constitutional rights. He emphasized the disparity in benefits between elected officials and long-serving public servants, arguing that denying gratuity payments to workers who have served for many years is unjust and disheartening.
The unions are urging the government to take immediate action and begin the payment of gratuities to retired public servants, citing the constitutional and moral obligation to ensure that these workers receive a dignified exit after years of service.
