The former Delta State governor was convicted on February 27 2012, after pleading guilty to 10 counts of money laundering and conspiracy to defraud at a Southwark Crown Court, London.
The law makes provision for an ex-governor to be paid N50m per year among other perks.
According to punch, calculations showed that for the five years Ibori spent in the UK prison, he was paid N250m by the state government.
Confirming the report, the Delta State Government on Saturday said it was legal for it to honour the laws of the state by paying severance packages and other entitlements ascribed to former governors and deputies including Ibori.
The state government said it would be flouting the law if it decided not to pay the former governor.
Speaking through his Chief Press Secretary, Mr. Charles Aniagwu, Governor Ifeanyi Okowa said on Saturday that if the state government was owing Ibori his severance package, the government would clear the backlogs as clearly stipulated by law.