The Federal Government has announced that it will clear all outstanding wage award and promotion arrears owed to civil servants before mid-August. This disclosure was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a press briefing in Abuja on Wednesday.
Payment Deadline and Beneficiaries
Edun stated that the government is committed to settling the arrears, which have been a source of concern for workers across various ministries, departments, and agencies (MDAs). The payment will cover the wage award approved for federal workers as part of the 2023 supplementary budget, as well as promotion arrears that have accumulated over the past two years.
According to the Minister, the directive from President Bola Tinubu is to ensure that all legitimate entitlements of workers are paid without further delay. The government has already made provisions in the 2026 budget to accommodate these payments.
Government's Commitment to Workers' Welfare
Edun emphasized that the administration recognizes the sacrifices made by Nigerian workers and is taking steps to improve their welfare. He noted that the payment of these arrears is part of broader efforts to boost morale and enhance productivity in the public service.
"The President has given a clear mandate that no worker should be left unpaid. We are working with the Office of the Accountant-General of the Federation to ensure that the payments are processed and disbursed before the mid-August deadline," Edun said.
Background and Previous Payments
The wage award was introduced in 2023 as a temporary measure to cushion the effects of the removal of fuel subsidies. The government had initially paid a six-month wage award, but subsequent months' payments were delayed due to fiscal constraints. Similarly, promotion arrears have been pending for some workers who were promoted between 2024 and 2025.
In a related development, the Head of Service of the Federation, Dr. Folasade Yemi-Esan, had earlier assured workers that the government was working on clearing all outstanding benefits. She urged workers to remain patient and continue to perform their duties diligently.
Impact on Workers and Economy
The announcement has been welcomed by labor unions, including the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC). They have repeatedly called on the government to pay the arrears, warning that continued delays could lead to industrial action.
Financial analysts believe that the payment will inject billions of naira into the economy, boosting consumer spending and providing relief to households. The government has not disclosed the exact amount to be paid, but sources indicate that it runs into hundreds of billions of naira.
Workers are advised to verify their bank details with their respective MDAs to ensure seamless payment. The government has also warned against any form of fraud or unauthorized deductions during the payment process.
