Abia Begins N61.8bn Gratuity Payment, Targets 2031 for Clearance

The Abia State Government has commenced payment of outstanding gratuities owed to verified retirees, with total inherited liabilities put at N61.8 billion.

Commissioner for Information, Prince Okey Kanu, disclosed this after the State Executive Council meeting presided over by Governor Alex Otti.

Kanu said the liability covered retirees from both the state and local government service between 2001 and 2025.

He said a government committee reviewed records from the State and Local Government Pension Boards before arriving at the total liability.

According to him, the government had adopted a phased payment programme to settle the arrears while maintaining other financial commitments.

Provisions for gratuity payments from 2026 to 2031 would be included in the state’s Medium-Term Expenditure Framework and annual budgets.
Kanu said the oldest arrears and retirees with the greatest social needs would receive priority.

Payments would be made directly to verified beneficiaries through a dedicated platform linked to the Treasury Single Account, with biometric verification introduced to prevent fraud and duplication.

He acknowledged that the 24-year backlog could not be eliminated overnight.

The government also announced a dedicated contact centre for retirees’ complaints and enquiries.

Meanwhile, the state government announced the resolution of issues that led to the Academic Staff Union of Universities (ASUU), Abia State University chapter, industrial action.
Kanu said outstanding check-off dues had been paid, while the new salary structure and Consolidated Academic Teaching Allowance had been processed for payment.

He also announced the commissioning of the Obinwa General Hospital and disclosed that the state’s health insurance scheme had reached 269,900 beneficiaries.

The government further announced the recruitment of 4,074 teachers into the public school system.
Kanu said a Federal Government ministerial committee had visited Abia to study its Smart School initiative.

On electricity, the government disclosed plans to establish a generation plant to improve power supply to the Aba ring-fenced area.

The state also said discussions over the proposed takeover of electricity distribution operations were still ongoing.

The Commissioner for Finance reiterated that verified gratuity beneficiaries were being paid and described the exercise as part of efforts to clean up inherited liabilities.

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