Abia State begins gratuity payments, resolves university strike

Abia State Governor Alex Otti has initiated the payment of gratuities to deserving beneficiaries, marking a significant step in addressing the state's financial obligations to its retirees. The government has also successfully resolved the issues that triggered a strike at Abia State University, Uturu, bringing normalcy back to the institution.

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So if you have to do a summary of the outstanding gratuities between 2001 and 2010, it was N7.2 billion. Between 2011 and 2023, ending May 2023, May 29, 2023, it was N43.6 billion. May 30, 2023 to the present is N10.9 billion. That’s how the total of N61.8 billion came about.

Okey Kanu, the state Commissioner for Information, briefed journalists on the outcomes of a state Executive Council meeting, confirming the commencement of gratuity payments. A state government committee, tasked with overseeing the gratuity payment process, reviewed records from the State Pensions Board and Local Government Pensions Board. The committee determined the total outstanding gratuity liability to be N61.8 billion, encompassing both state and local government retirees.

The liability breaks down into N7.2 billion for the period between 2001 and 2010, N43.6 billion for 2011 to May 29, 2023, and N10.9 billion from May 30, 2023, to the present. Considering the prolonged delay's impact on pensioners' lives and the government's commitment to fulfilling its obligations while maintaining developmental momentum, the committee recommended a phased payment plan. This plan involves fully providing the total annual financial impact in the state's medium-term expenditure framework and subsequent yearly budgets from 2026 to 2031 to ensure steady implementation and prevent further accumulation of arrears.

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So in consideration of the magnitude of the liability, the committee examined several payment scenarios. Having due consideration for the impact of the lengthy delay on the lives of pensioners, the obligation of government as a continuum, the limitations to the capacity of government to meet the established obligations while maintaining the momentum, gains in restoring our state, and the efficacy of the process.

Payments will be made directly to verified beneficiaries through a dedicated gratuity payment platform linked to the state's Treasury Single Account (TSA). Regarding the Abia State University strike, Commissioner Kanu stated that the issues have been resolved following the intervention of a committee led by the state Secretary to the State Government (SSG). He emphasized that Governor Otti had approved the university's demands back in April 2026, and the subsequent delay was due to administrative and implementation processes, not unwillingness.

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The committee therefore recommended that the total annual financial impact, 2026 to 2031, be fully provided in the state’s medium-term expenditure framework and subsequent yearly budgets to ensure steady implementation and to avoid further accumulation of gratuity arrears.

Specifically, outstanding check-off dues have been paid. Furthermore, a new salary scale, the Consolidated Academic Teaching Allowance (ASCATA), and other related payments have been addressed and will be included with the August 2026 salaries for the affected workers, which are expected soon.

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And it’s important to emphasize that before that action, the Governor of the State, Alex Otti, had approved the asset demands way back in April 2026. So the subsequent delay was, therefore, not a matter of government’s unwillingness or refusal to meet those demands, but rather an issue arising from administrative and implementation processes.