Lack of Funds No Defence to Unpaid Gratuity as Court Orders Adamawa to Pay Retiree ₦4.3m

Legal Nigeria

Lack of Funds No Defence to Unpaid Gratuity as Court Orders Adamawa to Pay Retiree ₦4.3m

A court gavel 1

The National Industrial Court of Nigeria has ordered the Adamawa State Government and the state’s Attorney-General to pay a retired civil servant, Mr Dogo, ₦4.3 million in outstanding gratuity.

The court also awarded ₦1 million as general damages and another ₦1 million as the cost of the action, bringing the total monetary award to ₦6.3 million.

Justice James Agbadu-Fishim, presiding at the Yola Judicial Division of the court, held that Dogo had established his claim through credible documentary evidence, while the defendants failed to provide a convincing justification for withholding his retirement benefit.

Dogo was absorbed into the Adamawa State Civil Service in March 1988 and retired in June 2023 after 35 years of service.

Following his retirement, the state’s Pension Board approved payment of his pension and gratuity in October 2023. A subsequent computation put his gratuity entitlement at ₦4.3 million.

However, the amount remained unpaid despite demands by the retiree and the service of a pre-action notice on the defendants in April 2025.

The state government and the Attorney-General argued that payment of gratuities was subject to administrative procedures, verification and availability of funds. They also maintained that the delay was not deliberate, saying the government was working towards settling outstanding benefits in phases.

But Justice Agbadu-Fishim held that the defendants failed to substantiate their claims of administrative and financial constraints.

The judge noted that the defendants did not provide evidence of their financial position or show which verification procedures the claimant had failed to complete. The court also observed that the defendants’ own evidence acknowledged Dogo’s entitlement to the gratuity.

The court consequently found that the retiree had proved his claim and was entitled to the outstanding ₦4.3 million.

On Dogo’s claim for ₦3.1 million over the loss in value of his gratuity due to inflation, the court declined to award the amount as a separate head of special damages.

Justice Agbadu-Fishim held that the claimant had not established a sufficient statutory or contractual basis for the claim or demonstrated a direct link between the alleged loss and the defendants’ conduct.

The judge, however, said the circumstances warranted general damages, noting that Dogo had served the state for 35 years, retired without receiving his gratuity and was compelled to approach the court to recover his entitlement.

The court therefore ordered the Adamawa State Government and the Attorney-General to pay the outstanding gratuity, general damages and costs of the action.

CONTACT LEGAL NIGERIA

Legal Nigeria welcomes partnerships, sponsorships, advertisements, press releases, event coverage, and article submissions from law firms, institutions, corporate organisations, and members of the legal community.

Contact:
📞 +234911456840
📧 legalnigeria@gmail.com

Support Independent Legal Journalism
Legal Nigeria Publications and Services
Access Bank (NGN): 1401825229
Access Bank (USD): 1773748357

Your support enables us to provide credible legal news, insightful analysis, and timely updates that keep the legal profession informed.