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🇳🇬 Nigeria /Economy & Trade

Abia State Begins N61.8 Billion Pension Arrears Payment

From ThisDay · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • The Abia State government has begun paying outstanding pension arrears totaling N61.8 billion, accumulated over 24 years.
  • This initiative is part of the administration's commitment to workers' welfare and responsible governance, addressing a significant inherited liability.
  • Payments will be technology-driven and transparent, prioritizing older obligations and structured according to the state's financial capacity, with future payments integrated into the state's budget.

Retirees in Abia State are experiencing significant relief as the government under Governor Alex Otti has commenced the payment of long-standing pension arrears, amounting to N61.8 billion. This move addresses a major inherited liability that has accumulated over the past 24 years.

Prince Okey Kanu, the Commissioner for Information, announced the commencement of a structured payment process during a post-State Executive Council briefing. He detailed that the liability breaks down into N7.2 billion from 2001-2010, N43.6 billion from 2011 to May 29, 2023, and an additional N10.9 billion from May 30, 2023, to the present.

Kanu acknowledged that clearing a 24-year backlog is a substantial undertaking, but emphasized Governor Otti's "responsible and compassionate decision to confront the challenge rather than ignore it." To ensure long-term sustainability and prevent future arrears, gratuity payments from 2026 to 2031 will be incorporated into the state’s Medium-Term Expenditure Framework and annual budgets.

a responsible and compassionate decision to confront the challenge rather than ignore it.

— Prince Okey KanuDescribing Governor Otti's approach to addressing the accumulated pension arrears.

The payment process is designed to be transparent and technology-driven. Verified beneficiaries will receive payments directly through a dedicated platform linked to the state’s Treasury Single Account, utilizing biometric validation to prevent fraud and duplication. The government will prioritize the oldest outstanding obligations while structuring payments to align with the state's financial capacity and other developmental needs.

In a related development, the Commissioner also confirmed the resolution of issues that led to a recent industrial action by the Academic Staff Union of Universities (ASUU) at Abia State University, Uturu. Outstanding check-off dues have been paid, and new salary scales, including allowances, are being processed for payment. These actions reflect the Otti administration's approach to tackling inherited problems with honesty and prioritizing the welfare of workers and retirees.

gratuity payments from 2026 to 2031 will be incorporated into the state’s Medium-Term Expenditure Framework and captured in annual budgets.

— Abia State GovernmentOutlining the plan for sustainable gratuity payments.
DistantNews Editorial

Originally published by ThisDay in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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