Nigeria Starts Paying N35,000 Wage Arrears to 1.3 Million Federal Workers
The Federal Government of Nigeria has begun disbursing the long-delayed N35,000 monthly wage arrears to federal workers, marking a critical step in addressing years of financial strain for over a million civil servants. The Office of the Accountant General of the Federation (OAGF) confirmed the start of payments on Monday, November 17, 2025, in Abuja, with many employees already seeing the first tranche in their accounts. The arrears—totaling N175,000 per worker across five installments—are meant to compensate for five months of unpaid wage increases introduced as a temporary relief measure after fuel subsidy removal. But for many, it’s not enough. "They told us we were owed five months," said Mr. Joseph Edeh, a federal worker in Abuja. "They paid two. Then they stopped. Why treat us like this?"
Why This Payment Matters Now
Nigeria’s inflation hit 33.7% in October 2025, the highest in over two decades, according to the National Bureau of Statistics. For federal workers earning below N75,000 monthly, the N35,000 top-up isn’t luxury—it’s survival. Miss Franca Ofili, a clerk in the Ministry of Education, put it plainly: "That N35,000 can go a long way to solve a lot of our financial problems. We need the money." The government introduced the wage award in early 2025 to cushion the blow of economic reforms under President Bola Tinubu, but delays sparked public outrage and protests led by the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC).
Payments in Stages, Not Speed
According to Mr. Bawa Mokwa, Director of Press and Public Relations at the OAGF, the government has paid two tranches so far—January and August 2025. Three more remain. "Contrary to insinuations in some quarters," Mokwa said in the November 17 statement, "the Federal Government has not reneged on payment." But the slow rollout has eroded trust. Workers aren’t asking for miracles. They want clarity. And speed. "Whenever there’s anything at stake," said Dr. Uche Anune, a federal health officer, "the government tends to be relaxed until people start agitating. That should not be the case." The OAGF insists payments are being processed through the Integrated Payroll and Personnel Information System (IPPIS), which is supposed to ensure transparency. Yet, thousands report no credits, and some have been told their names "aren’t on the list." The government says it’s verifying eligibility, but critics question why verification didn’t happen before the promise was made.
False Reports and the Budget Confusion
Complicating matters were rumors that the N35,000 wage award had been dropped from the 2025 budget. Mr. Babatunde Ogunjimi, the Accountant General of the Federation, issued a rare public rebuttal: "There was no press briefing by the Accountant General on the matter of wage award. Any report quoting him as excluding the N35,000 from the 2025 budget is entirely false." That clarification matters because it signals the government still sees this as a binding obligation—not a political gesture. But words don’t pay rent. The delay between announcement and payment has stretched over six months. In the meantime, workers have watched prices for rice, fuel, and medicine surge. One nurse in Kano told a local reporter she sold her bicycle to buy insulin for her diabetic child. "We’re not asking for a raise," she said. "We’re asking for what was promised." The OAGF’s statement also noted that payments are "dependent on fund availability." That’s a diplomatic way of saying the treasury is stretched thin. Nigeria’s oil revenue remains volatile, and foreign exchange pressures continue. But with over N45 billion already disbursed to federal workers in the first two tranches, the question isn’t whether the money exists—it’s whether political will does.
What’s Next for Workers and the Government
With three tranches still due, workers are demanding a lump-sum payout. "Clear the arrears at once and forget about it," urged Mr. Edeh. That’s unlikely. The government prefers staggered payments to manage cash flow. But the longer they drag it out, the more the promise feels like a trap.
What’s clear is this: the N35,000 wage award was never meant to be permanent. It was a band-aid. The real issue—the failure to negotiate a sustainable minimum wage—remains unresolved. The NLC and TUC have signaled they’ll return to the bargaining table in January 2026. But without trust, negotiations will be rocky.
Behind the Numbers: Who’s Really Affected?
Approximately 1.3 million federal workers—teachers, nurses, clerks, engineers, and security staff—are in this boat. That’s more than the population of many African nations. Most live in urban centers like Lagos, Abuja, and Port Harcourt, where rent and transport costs have doubled since 2023. The average federal worker spends over 80% of their income on food and housing. The N35,000 arrears, if paid in full, would cover two months of rent for a modest apartment in Abuja—or a year’s worth of school fees for one child.
The government’s response has been bureaucratic. The IPPIS system, though technically sound, has been plagued by delays in updating records. Some workers who retired in 2024 still show as active. Others, hired in 2023, aren’t in the system at all. The OAGF says it’s working on corrections. But for those living paycheck to paycheck, "working on it" isn’t enough.
Frequently Asked Questions
How much total arrears is the government paying out?
The Federal Government is paying N175,000 in total arrears per eligible federal worker, broken into five monthly installments of N35,000 each. With approximately 1.3 million workers, the total payout exceeds N227.5 billion. Two tranches have been paid, meaning around N91 billion has been disbursed so far, with N136.5 billion still pending.
Why are some workers not receiving payments yet?
The Office of the Accountant General of the Federation cites delays in the Integrated Payroll and Personnel Information System (IPPIS), including outdated records, duplicate entries, and unverified employment status. Workers must re-verify their details through their ministries. Many report being told their names aren’t on the list, even after years of service.
Was the N35,000 wage award ever part of the 2025 budget?
Yes. Mr. Babatunde Ogunjimi, the Accountant General, explicitly denied claims that the wage award was excluded from the 2025 budget. The payment is funded from the federal consolidated revenue, not as a separate line item. The confusion stemmed from media misreporting and lack of clear communication from the government.
What happens if the government can’t pay the remaining three tranches?
If the remaining payments are delayed or canceled, it could trigger renewed industrial action by the Nigeria Labour Congress and Trade Union Congress. Past threats of strikes were only averted by partial payments. A full breach of promise would severely damage public trust and could lead to nationwide protests, especially as inflation continues to rise.
Is this wage award a permanent raise?
No. The N35,000 is strictly a backpay for five months of missed increases, not a new minimum wage. The government has not yet finalized negotiations on a permanent wage structure. Labour unions are pushing for a new minimum wage of at least N100,000, but the Federal Executive Council has not approved any proposal yet. Workers fear this temporary fix will become the new normal.
How does this affect the broader economy?
The wage arrears injection is expected to boost consumer spending in urban centers, especially in sectors like food retail, transport, and housing. Economists estimate that each N35,000 payment circulates at least three times before leaving the local economy. If fully paid, the N227.5 billion disbursement could stimulate an additional N682.5 billion in economic activity—offering a short-term lift to GDP amid recession fears.
- Nov 18, 2025
- SIYABONGA SOKHELA
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