Otti Begins Payment Of N61.8bn Gratuity Arrears To Retirees

Abia State Government has commenced the payment of outstanding gratuities to state and local government retirees.

A gratuity committee established by the Otti led administration puts the total liability inherited and accumulated from 2001 to 2025 at N61.8 billion.

The Commissioner for Information, Prince Okey Kanu, disclosed this on Monday while briefing journalists at A Government House Umuahia, on the outcome of the State Executive Council meeting presided over by Governor Alex Otti.

According to Prince Kanu, the gratuity committee was mandated to ascertain and validate the cumulative gratuity arrears owed to state and local government retirees from 2001 to 2025 and recommend feasible modalities and timelines for their payment.

The Commissioner noted that its review of records from the State Pensions Board and Local Government Pensions Board established an outstanding liability of N61.8 billion.

He said N7.2 billion of the liability accrued between 2001 and 2010, while N43.6 billion accumulated between 2011 and May 29, 2023, with N10.9 billion accrued from May 30, 2023, to the present.

Prince Kanu said the committee found that successive administrations, particularly those of former governors T.A. Orji and Okezie Ikpeazu, had affected less than 0.01 per cent of gratuity payments to retirees who left the service between 2011 and May 2023.

“The committee established a comprehensive review that successive administrations in Abia State, particularly those of governors T.A .Orji and Okezie Victor Ikpeazu, only affected less than 0.01% of gratuities payment to retirees who left the service between 2011 and May 2023.

“Specifically, upon review of records from the State Pensions Board and Local Government Pensions Board, the committee determined the total outstanding gratuity liability to be 61.8 billion, covering both state and local government retirees.

“So if you have to do a summary of the outstanding gratuities between 2001 and 2010, 7.2 billion. Between 2011 and 2023, ending May 2023, May 29, 2023 was 43.6 billion.

“And May 30, 2023 to the present is 10.9 billion. That’s how the total of 61.8 came about”, the commissioner explained.

He said the gratuity committee, after considering the size of the liability, the prolonged hardship suffered by retirees and the state’s financial capacity, recommended that the annual financial impact of the payments from 2026 to 2031 be incorporated into the state’s Medium-Term Expenditure Framework and subsequent annual budgets.

Prince Kanu said that the measure was designed to ensure sustained payments and prevent further accumulation of gratuity arrears.

The Commissioner added that payments would be made directly to verified beneficiaries through a dedicated gratuity payment platform linked to the state’s Treasury Single Account, with biometric validation to prevent duplication and fraud.

He said that the state government would also prioritize the oldest arrears and spread payments across subsequent years according to their impact on annual expenditure and social needs.

According to Prince Kanu, “It will be very difficult for this administration to clean up the whole mess of 24 years in three years.

“24 years of misrule and maladministration that has brought us to this present past”.

He, however, assured retirees that the Otti led government would continue to address their concerns, noting that some beneficiaries had already received their final gratuity payments.

To address complaints arising from the exercise, Prince Kanu said the state government established a helpline through the Abia State Citizens Contact Centre 0800-000-0232.

He added that the helpline will be available from 8am to 4pm on working days, while complaints can also be submitted through contactcenter@abiastate.gov.ng, which would operate 24 hours.

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