FG pays second tranche of N35,000 wage award arrears

DDM News

(DDM) – The Federal Government has confirmed the payment of the second tranche of the outstanding N35,000 wage award arrears to federal workers across the country.

DDM gathered that the Office of the Accountant General of the Federation (OAGF) disclosed the update in a statement issued on Friday by its spokesperson, Bawa Mokwa, in Abuja.

According to the OAGF, the Federal Government had earlier settled one month out of the initial five months of arrears owed.

With the latest payment, there are now three tranches remaining before the wage award backlog is fully cleared.

The statement stressed that contrary to speculations in certain quarters, the Federal Government has not abandoned its commitment to fulfilling the payments.

It explained that the arrears are being paid in monthly installments of N35,000 until the balance is settled.

The wage award was introduced as part of measures to cushion the impact of recent economic reforms on Nigerian workers, particularly following the removal of fuel subsidy and the resulting spike in living costs.

The arrangement was announced in late 2023 after negotiations between the Federal Government and organized labour unions, led by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).

While the payments were meant to be made consecutively over a five-month period, funding constraints and bureaucratic processes have delayed full disbursement.

This delay had earlier prompted public criticism from the NLC, which accused the government of showing a lack of urgency in alleviating the economic burden on workers.

The NLC had also warned that the staggered payments could dampen workers’ confidence in government promises and escalate labour unrest.

The Federal Government, however, maintains that the installment approach is the most sustainable way to fulfill the pledge without jeopardizing other fiscal obligations.

The OAGF reiterated that each eligible worker will receive the full N175,000 arrears in the coming months once the remaining three tranches are settled.

It assured civil servants that all necessary steps are being taken to ensure timely release of the outstanding payments.

Labour leaders are expected to meet in the coming weeks to review the payment progress and decide whether to maintain their cooperation with the government or escalate demands through industrial action.

The wage award remains one of the government’s key stopgap measures while discussions on a new national minimum wage continue.

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