FG pays second tranche of N35,000 wage award arrears — What federal workers need to know
FG N35,000 wage award payment update raises hope for civil servants
The Federal Government has confirmed the release of the second tranche of the N35,000 wage award arrears to federal workers. This confirmation came through a statement from the Office of the Accountant General of the Federation (OAGF) in Abuja, signed by the Director of Press and Public Relations, Bawa Mokwa. The announcement brings renewed hope to thousands of civil servants who have been awaiting the complete settlement of the wage award promised last year.
N35,000 wage award arrears — second tranche hits workers’ accounts
According to the OAGF, this latest payment is part of the government’s ongoing effort to settle the five-month wage award arrears agreed upon in 2023. The initial payment, which covered one month’s arrears, was made earlier in the year. With the second tranche now completed, only three monthly payments remain before the government fully offsets the arrears.
Why the N35,000 wage award matters to Nigerian workers
The N35,000 wage award is part of a palliative measure introduced in 2023 following the removal of fuel subsidy. The decision to provide financial relief came after negotiations between the Federal Government and organised labour unions. Rising fuel costs had triggered a sharp increase in transportation fares, food prices, and other living expenses, placing extra financial strain on Nigerian workers. This wage award is designed to provide immediate cash relief to federal employees, helping them cope with inflation and higher daily expenses.
Government dismisses rumours of abandoning arrears payment
In recent weeks, speculation had grown among some federal workers that the government might abandon the remaining arrears. However, the OAGF has made it clear that such fears are unfounded. “Contrary to insinuations in some quarters, the Federal Government has not reneged on payment of the wage award arrears,” the statement stressed. This assurance is aimed at calming tensions and restoring trust between the government and civil service employees.
Breakdown of the N35,000 wage award payment schedule
The wage award is being disbursed in five equal instalments of N35,000 each, totalling N175,000 per federal worker. The first instalment was paid earlier this year, and the newly released second tranche means two months’ arrears have now been cleared. The remaining three tranches are expected to follow in line with the government’s stated plan to pay monthly until all arrears are settled.
Economic context — why wage awards are important now
The Nigerian economy has faced increased pressure since the fuel subsidy removal in mid-2023. Inflation has consistently risen, eroding the purchasing power of salaries. According to economic experts, temporary relief measures such as wage awards play a critical role in preventing a deeper financial crisis for households dependent on fixed incomes. By continuing the payment schedule, the Federal Government aims to ease the financial burden until longer-term salary adjustments or structural reforms take effect.
Commitment from the Federal Government to complete payment
The OAGF reiterated that the Federal Government remains committed to fulfilling the wage award obligation in full. “The Federal Government will continue to pay the wage award in instalments of N35,000 per month until the outstanding arrears are exhausted,” the statement read. This commitment is expected to restore confidence among civil servants, especially as the cost of living continues to rise.
Earlier payments signal steady progress
In May 2024, media reports confirmed the commencement of arrears payments to federal civil servants nationwide. That first payment served as a practical sign of the government’s willingness to honour its promises despite budgetary constraints. The new payment further reinforces that pattern, suggesting that the remaining tranches may be delivered on schedule if no unforeseen financial challenges arise.
Impact on workers and the labour market
For many federal workers, the N35,000 wage award payments have become an essential lifeline. While not enough to completely offset the effects of inflation, they provide much-needed relief for transportation, food, and utility costs. Labour unions have consistently pushed for faster disbursement, arguing that delayed payments weaken the impact of the palliative. However, the consistent release of tranches signals a gradual but steady approach by the government.
Looking ahead — three tranches to go
With only three instalments left, attention is now shifting to when the next payments will be made. While the OAGF did not provide specific future dates, it confirmed the plan to maintain monthly disbursements until all outstanding arrears are paid. Workers and union representatives are expected to keep a close watch on the process, ensuring the government remains on track.
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