The Court of Appeal has ordered the Kwara State Government to pay N502 million in outstanding pension and gratuity arrears to 3,060 retirees following an 18-year dispute.
The settlement brings relief to thousands of pensioners whose entitlements were deducted in 2008 during the administration of former Governor Bukola Saraki.
The dispute dragged through the courts for nearly two decades before the parties reached an agreement through the Court of Appeal Alternative Dispute Resolution Centre (CAADRC).
The Court of Appeal, Ilorin Division, referred the matter to the centre in Abuja on March 30, 2023, paving the way for mediation.
Under the agreement, the Kwara State Government will pay 50 per cent of the outstanding N1.4 billion to 3,060 verified beneficiaries.
The beneficiaries include surviving pensioners and authorised representatives of retirees who have died.
The payment will go directly to the beneficiaries under the supervision of a committee responsible for reconciling records, verifying claims and clearing eligible pensioners.
The settlement also outlines the steps required to release the funds.
The Kwara State Ministry of Justice must notify the governor of the settlement within two weeks. The State Pension Board will then request the release of the approved amount, while the Ministry of Finance will facilitate payment after receiving the governor’s approval.
The Court of Appeal subsequently adopted the settlement terms as its judgment, effectively ending the long-running dispute.
Reacting to the development, the pensioners’ lawyer, Deji Gbadeyan, praised Governor AbdulRahman AbdulRazaq for approving the settlement through mediation.
Gbadeyan acknowledged that the current administration did not make the original deductions but inherited the dispute.
However, he expressed disappointment over the 18-year delay, noting that several pensioners died before the case was resolved, while many surviving beneficiaries have grown old.