The Abia State Government has commenced payment of N61.8 billion in gratuity arrears owed to verified state and local government retirees. Commissioner for Information, Prince Okey Kanu, disclosed this after Monday’s State Executive Council meeting chaired by Governor Alex Otti.
Kanu said the government’s decision followed a comprehensive review of outstanding pension records covering retirees between 2001 and 2025. The exercise, he explained, was conducted by a committee established to validate the liabilities and develop a sustainable payment framework.
According to him, the review established total outstanding gratuity obligations of N61.8 billion. The figure includes liabilities accumulated over several years, with the government acknowledging that successive administrations had made only limited payments towards the backlog.
Kanu said the size of the Abia gratuity arrears made it impossible to settle the entire obligation immediately. He explained that the government had therefore adopted a phased payment plan running through 2031. Under the arrangement, provisions for gratuity payments between 2026 and 2031 will be incorporated into the state’s Medium-Term Expenditure Framework and annual budgets. The strategy, he said, would allow government to settle inherited obligations while preventing new arrears from accumulating.
Kanu added that priority would be given to the oldest outstanding claims and retirees considered to have greater social needs. The government also plans to introduce a dedicated payment platform connected to the Treasury Single Account. The platform will use biometric verification to prevent duplicate claims, fraud and wrongful payments.
The commissioner acknowledged that the 24-year backlog could not be eliminated overnight but said the Otti administration remained committed to addressing inherited liabilities.
A dedicated contact centre has also been established for retirees with complaints or enquiries about the payment exercise. The helpline, 0800 000 0232, will operate from 8am to 4pm on working days, while enquiries can also be sent through the government’s contact centre email.
Kanu also announced the resolution of issues surrounding the recent ASUU strike at Abia State University. He said outstanding check-off dues had been paid, while the new salary structure and related academic allowances had been processed for payment with August salaries.
The government also announced the recruitment of 4,074 teachers, with successful candidates expected to begin onboarding and orientation soon. Meanwhile, Governor Otti is expected to commission the newly completed Obinwa General Hospital at Mgboko.
The government further disclosed that health insurance enrolment in Abia had risen to 269,900 beneficiaries. On electricity, officials said plans were underway to establish a generation plant serving the Aba ring-fenced area, alongside mini-grid projects for underserved communities.
The government also maintained that its proposed electricity distribution takeover was still ongoing, with the existing distribution company remaining responsible until the transaction is completed. Kanu said the broader reforms were aimed at addressing inherited obligations while improving services and restoring confidence among retirees, workers and residents.
