Uncertainty looms as 3,060 Kwara pensioners reject state government’s settlement offer

The protracted legal dispute between the Kwara State Government and 3,060 pensioners over unpaid and deducted gratuities and pension arrears remains unresolved, nearly 17 years after it began.

The pensioners have rejected the latest out-of-court settlement terms proposed by the state government, casting doubt on a resolution despite efforts initiated by the Court of Appeal.

In 2023, the Court of Appeal ordered both parties to pursue an out-of-court settlement, a process now being handled by the Court of Appeal Mediation and Conciliation Centre (CAMC) in Ilorin, the state capital.

The conflict dates back to 2008 when the administration of former Governor Bukola Saraki allegedly withheld and deducted 50% of N1.4 billion due in gratuities and pension arrears. Only N502 million was paid, while the remaining N502 million was left unpaid.

Represented by their counsel, Timothy Gbadeyan, the pensioners argue that paying them the withheld amount in 2025, without considering currency devaluation, would significantly diminish its value. They insist the outstanding N502 million be reviewed upwards and fully paid.

“The 3,060 verified pensioners, whose names and payment records are documented and agreed upon, deserve full payment of the withheld balance,” Gbadeyan stated. “We also demand N36 million as reimbursement for legal costs incurred since 2008, and 10% of the N1.6 billion claim as professional fees to be paid to our legal team.”

The pensioners further proposed that all payments be routed through their counsel’s account, overseen by a five-member committee to verify and disburse the funds. They also challenged the state’s claim that only N251 million was withheld, arguing that the full N502 million remains unpaid.

In its response, however, the Kwara State Government, through the Attorney-General and Commissioner for Justice, Ibrahim Sulyman, proposed a final settlement of N251 million — 50% of the amount earlier paid — as full and final compensation.

“The state proposes to pay this sum directly into the verified accounts of the 3,060 pensioners,” Sulyman stated, adding that this offer represents the government’s final position in the spirit of mediation.

The Attorney-General rejected the pensioners’ demands for litigation costs and legal fees, describing them as unacceptable.

He reaffirmed that the verification process would rely on the already agreed list of the 3,060 pensioners cleared by the state pension board.

With both parties still at odds, the fate of the affected pensioners remains uncertain, and a long-awaited resolution may still be out of reach.