Abia government begins phased payment of N62bn gratuity backlog owed to retirees

The Abia State Government has commenced the phased payment of gratuity to verified pensioners of the state and local governments who retired between 2001 and 2010.

The Commissioner for Information, Okey Kanu, disclosed this while briefing journalists in Umuahia, saying beneficiaries had already started receiving their payments across the state.

Kanu said the State Executive Council carefully considered the report of a committee set up to review the outstanding gratuity owed to retirees and develop a sustainable framework for settling the backlog.

Government puts gratuity liability at N61.8bn

According to the commissioner, the review established the total outstanding gratuity liability at N61.8bn.

He said N7.2bn of the debt accumulated between 2001 and 2010, while N43.6bn was incurred between 2011 and May 2023.

Kanu added that another N10.9bn had accumulated from May 2023 to date, bringing the total outstanding liability to N61.8bn.

He said the review also showed that payments made by successive administrations, particularly those of former governors Theodore Orji and Okezie Ikpeazu, covered less than 0.01 per cent of the gratuity owed to retirees who left service between 2011 and May 2023.

Government adopts long-term payment plan

Kanu explained that the committee considered the prolonged hardship faced by retirees, the principle of government as a continuum, the state’s financial capacity and the need to sustain ongoing development programmes.

“The government is committed to addressing this challenge in a responsible and sustainable manner.

“We cannot realistically clear the mess of 24 years within three years, but we are determined to establish a system that guarantees continuous payment and prevents the accumulation of fresh arrears,” Kanu stated.

The committee recommended that the annual financial implications of gratuity payments from 2026 to 2031 be incorporated into the state’s Medium-Term Expenditure Framework and subsequent annual budgets.

Verified retirees to receive direct payments

The commissioner said the arrangement would ensure sustained payment of gratuity while preventing the recurrence of a huge backlog.

He disclosed that payments would be made directly to verified beneficiaries through a dedicated gratuity payment platform linked to the State Treasury Single Account.

According to him, biometric validation would be used to prevent duplication, fraud and other irregularities in the payment process.

Oldest arrears to receive priority

Kanu said the retirees’ database would undergo further cleaning and validation because some records concerning years of service and previous payments remained in analogue form.

He stressed that subsequent payments would prioritise the oldest outstanding arrears and beneficiaries considered to be experiencing the greatest social impact.

The commissioner assured retirees that the state government remained committed to protecting their interests and addressing the longstanding gratuity challenge.

He added that the commencement of payments was part of the administration’s broader commitment to responsible governance and the welfare of workers and retirees in Abia State.