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

Otti

Abia State Governor, Dr Alex Otti

From Okey Sampson, Umuahia

Abia State Government said it has commenced the phased payment of gratuity to all verified pensioners of State and Local Governments in the state who retired between 2001 and 2010.

The Commissioner for Information, Okey Kanu who disclosed this while briefing journalists in Umuahia, revealed that the State Executive Council had carefully considered the report of the committee constituted to review and develop a sustainable framework for the payment of the outstanding gratuity owed to retirees at both the state and local government levels.

Kanu informed that the review established the total outstanding gratuity liability at N61.8bn, comprising N7.2bn accumulated between 2001 and 2010, N43.6bn incurred between 2011 and May 2023, and N10.9bn accumulated from May 2023 to date.

The Commissioner revealed that the review also showed that payments made by successive administrations, particularly the administrations of former Governors Theodore Orji and Okezie Ikpeazu, covered less than 0.01 per cent of the gratuity owed to retirees who exited the service between 2011 and May 2023.

He explained that given the magnitude of the liability, the committee considered the prolonged hardship faced by retirees, the responsibility 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 areas” Prince Kanu stated.

He further stated that the committee recommended the incorporation of the annual financial implications of the gratuity payments from 2026 to 2031 into the state’s Medium-Term Expenditure Framework and subsequent annual budgets.

This arrangement the Commissioner said would ensure sustained payment of gratuity while preventing the recurrence of the huge backlog inherited by the present administration.

He further disclosed that payments would be made directly to verified beneficiaries through a dedicated gratuity payment platform linked to the State Treasury Single Account, with biometric validation to prevent duplication, fraud and other irregularities.

Prince Kanu said the retirees’ database would also undergo further cleaning and validation, noting that some records relating to years of service and previous payments were still in analogue form.

He stressed that subsequent payments would prioritise the oldest arrears and beneficiaries considered to be experiencing the greatest social impact, assuring retirees that the government remained committed to protecting their interests.

The Commissioner disclosed that beneficiaries had already started receiving their gratuity payments across the state, describing the commencement of payments as part of the administration’s broader commitment to responsible governance and workers’ welfare.

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