The Nigeria Labour Congress (NLC) has welcomed the Federal Government’s decision to restore gratuity payments for federal civil servants but says the move has reopened concerns about decades of unpaid gratuities owed to retired workers.

Speaking on the development, NLC President Joe Ajaero described the restoration as a positive step toward improving workers’ welfare but questioned why gratuity payments were discontinued for many years despite no law expressly abolishing the benefit.

According to Ajaero, gratuity and pension are distinct retirement entitlements, stressing that the Pension Reform Act, which introduced the Contributory Pension Scheme, did not eliminate gratuity payments.

He argued that thousands of retirees who left public service over the years without receiving gratuities deserve clarification and compensation, noting that the government should address the backlog of unpaid benefits alongside the implementation of the new policy.

The Federal Government recently approved a new gratuity scheme for federal civil servants under the Contributory Pension Scheme. The initiative, which took effect from January 2026, is expected to provide retiring workers with a lump-sum payment in addition to their pension benefits.

Labour leaders have long advocated the return of gratuity payments, arguing that they provide critical financial support to retirees transitioning from active service.

The NLC said the policy would help improve retirement security and reduce the economic hardship faced by many former public servants.

However, Ajaero expressed concern about the situation of many pensioners who currently receive meagre monthly pensions, urging authorities to undertake broader reforms that would ensure retirees enjoy a dignified standard of living.

He further called on the government to explain how it intends to handle the claims of workers who retired during the years when gratuity payments were suspended, saying the restoration exercise should not exclude those who were previously affected.

The development has been welcomed by civil servants and labour unions across the country, many of whom view the return of gratuity payments as a significant milestone in the ongoing effort to strengthen workers’ welfare and retirement benefits.

As implementation begins, attention is expected to focus on whether the government will extend the policy’s benefits to retirees who missed out on gratuity payments over the past two decades.