Finance Minister says payment of outstanding wage award arrears and promotion arrears is at the final processing stage

The Federal Government has assured federal civil servants that payment of the outstanding N35,000 Wage Award arrears will commence before the middle of August, saying the release of funds has reached its final stage, while outstanding promotion arrears are also being processed.

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The assurance comes amid renewed pressure from organised labour over delays in implementing workers’ welfare agreements, including unpaid wage awards, promotion arrears, salary relativity for health workers and other outstanding allowances.

The commitment was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a meeting in Abuja with the leadership of the Joint Public Service Negotiating Council (JPSNC), Trade Side, led by its National President, Kabiru Ado Minjibir.

The development was disclosed in a statement issued on Wednesday by the Head of Information and Public Relations Unit of the Federal Ministry of Finance, Efe Ovuakporie.

According to the statement, “The Federal Government has assured public servants that the outstanding wage award will be paid before the middle of August, while promotion arrears are being processed as part of ongoing efforts to fulfil its commitments to workers.”

Edun said the administration had already begun addressing several labour concerns before receiving the council’s formal communication, adding that President Bola Tinubu’s government remained committed to honouring agreements reached with workers.

“When government makes commitments, it delivers. We are not in the habit of making promises that cannot be fulfilled. Where there are outstanding issues, we will give realistic timelines and ensure they are implemented,” the minister said.

Providing an update on the payment process, the minister disclosed that the approval procedure for releasing the funds was nearing completion.

“The necessary release for payment of the outstanding wage award is being concluded, and we are confident that eligible public servants will begin receiving the payment before the middle of the month,” he said.

Edun also assured labour leaders that outstanding promotion arrears were being processed in accordance with established procedures and directed ministry officials to immediately review submissions presented by the council, engage relevant Ministries, Departments and Agencies and accelerate action on unresolved labour matters.

Acknowledging concerns raised by organised labour over delays in implementing previous agreements, the minister said the government intended to strengthen confidence through greater transparency and sustained engagement.

“Our objective is to build a system where issues are resolved proactively. We want workers to have confidence that once government gives its word, it will honour that commitment,” he added.

The Permanent Secretary of the Federal Ministry of Finance, Raymond Omachi, pledged closer collaboration with labour unions to ensure approved workers’ entitlements are processed without unnecessary delays.

“The ministry will continue to engage relevant government institutions to fast-track the resolution of outstanding labour issues, stressing that constructive dialogue remains the most effective path to sustaining industrial harmony,” Omachi said.

Also speaking, the Permanent Secretary, Special Duties, Mohammed Sanusi Danjuma, disclosed that Batch 7 promotion arrears, omitted during an earlier payment exercise, were now being processed alongside Batch 9.

He expressed confidence that affected workers would begin receiving their entitlements once the exercise was completed, adding that efforts were also underway to resolve issues relating to the 40 per cent Peculiar Allowance and other outstanding labour-related claims.

The Director of Cash Management, Christiana Osho, confirmed that reconciliation of the outstanding wage award had been completed.

She said the payment release had entered its final stage and that eligible workers would begin receiving the arrears immediately after the funds were released, while promotion arrears would be paid according to the approved schedule.

Earlier, JPSNC President Kabiru Ado Minjibir urged the Federal Government to expedite action on pending workers’ entitlements, identifying the outstanding wage award, promotion arrears, salary relativity for health workers and other unresolved welfare issues as matters requiring urgent attention.

He said timely implementation of the outstanding commitments would strengthen industrial harmony and reassure workers of the government’s commitment to their welfare.

The latest assurance follows renewed demands by the council for an urgent meeting with the finance minister over delays in paying the remaining wage award instalments and implementing the 40 per cent Peculiar Allowance.

In a letter signed by the council’s National Secretary, Gbenga Olowoyo, on behalf of National Chairman Benjamin Yanto, the union warned that failure to resolve the outstanding issues could trigger widespread dissatisfaction across the federal public service.

The union said the meeting, requested on or before August 11, was intended to find an amicable resolution to workers’ welfare demands and prevent what it described as a “brewing industrial crisis.”

The N35,000 Wage Award was approved by President Tinubu in October 2023 as a temporary measure to cushion the impact of the removal of petrol subsidy and rising living costs while negotiations on a new national minimum wage were ongoing.

Although the allowance was initially approved for six months and payments began later that year, implementation became inconsistent, leaving several months unpaid.

In April 2025, the Office of the Accountant-General of the Federation announced that the five outstanding months would be settled in instalments after workers received their April salaries.

Two tranches were subsequently paid in May and August 2025, with the remaining instalments yet to be fully settled.

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The government’s latest pledge is expected to ease growing tension between the Federal Government and organised labour, as both sides continue to rely on dialogue to resolve outstanding welfare issues and maintain industrial peace within the federal public service.