“Lack Of Funds Is No Defence To Unpaid Gratuity” — Court Orders Adamawa Government To Pay Retiree ₦4.3m

The Presiding Judge of the Yola Judicial Division of the National Industrial Court, sitting in Yola, Adamawa State, has ordered the Adamawa State Government and the Attorney-General of the State to immediately pay a retired civil servant, Mr. Dogo, the sum of ₦4.3 million in outstanding gratuity, following their failure to settle his retirement benefits.

Justice James Agbadu-Fishim also awarded ₦1 million as general damages and another ₦1 million as costs of the action in favour of the retiree.

In his judgment, Justice Agbadu-Fishim held that Dogo had successfully established his claim through credible documentary evidence, while the Adamawa State Government and the Attorney-General failed to provide any convincing defence to justify the non-payment of his gratuity.

The court found that Dogo’s documents, which included evidence of his employment, retirement, approval for payment of pension and gratuity, and computation of his retirement benefits, remained unchallenged by the defendants.

From the facts, Dogo had submitted that he was absorbed into the Adamawa State Civil Service by a letter dated March 1, 1988, and that his retirement was subsequently approved by a letter dated June 2, 2023.

Following his retirement, the Adamawa State Pension Board issued him an approval for payment of pension and gratuity in October 2023, while a computation of his retirement benefits in November 2023 placed his gratuity entitlement at ₦4.3 million.

However, despite the approval and computation of his retirement benefits, the claimant alleged that the gratuity remained unpaid.

Dogo further told the court that he made demands for payment and served the defendants with a one-month pre-action notice in April 2025, but the state government failed to take any steps to settle the outstanding obligation, prompting him to institute the suit.

In their defence, the Adamawa State Government and the Attorney-General maintained that payment of gratuities to retirees was subject to administrative processes, availability of funds and verification procedures.

They argued that the government was progressively working towards settling outstanding gratuities owed to retirees, including the claimant. The government attributed the delay in payment to administrative and financial constraints rather than any deliberate refusal or malicious intention to withhold the claimant’s entitlement.

Consequently, their counsel urged the court to dismiss the suit, arguing that the claimant had failed to establish the legal basis for his claims for loss of value, general damages and litigation costs.

However, counsel to the claimant, P.R. Ajumebor, argued that his client had sufficiently established his entitlement through documentary evidence showing his employment, retirement, approval of his gratuity and the continued failure of the defendants to make payment despite repeated demands.

Delivering the judgment, Justice Agbadu-Fishim held that the defendants failed to substantiate their claims regarding administrative procedures, insufficient funds and verification requirements as justification for withholding the claimant’s gratuity.

The court consequently held that Dogo had proved his case as required by law and was entitled to the outstanding gratuity.

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

Justice Agbadu-Fishim reasoned that the claimant had not established a sufficient statutory or contractual basis for the claim, nor demonstrated a direct link between the alleged loss and any wrongful act or omission by the defendants.

The judge noted that Dogo had served the Adamawa State Government for 35 years, retired without receiving his gratuity and was subsequently compelled to institute legal proceedings to recover his entitlement as a senior citizen.

The court held that the circumstances justified an award of general damages, particularly in view of the erosion of the purchasing power of the gratuity over time, and awarded ₦1 million in favour of Dogo.

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