Abia offsets nine years pension arrears with N9 billion

…Plans contributory pension scheme for civil servants

By Boniface Okoro in Umuahia

Abia State government says it spent about N9 billion to offset arrears of pensions owed pensioners in the state since 2014.

Commissioner for Finance, Mr Mike Akpara, disclosed this in Umuahia during a joint Press Briefing after the weekly State Executive Council meeting held on Tuesday, April 2, 2024, with the Council approving migrating Abia workers to contributory pension scheme and reconstruction of Osisioma junction-Ekeakpara road, among other resolutions.

The state Governor, Dr. Alex Otti, presided over the meeting.

Others who were part of the joint Briefing at Government House, Umuahia, were the Commissioner for Information and Culture, Prince Okey Kanu, Commissioner for Health, Dr (Mrs) Ngozi Okonkwo, as well as the Special Adviser to the Governor on Media and Publicity, Mr Ferdinand Ekeoma.

The state government, on March 28, 2024 commenced paying off the  accumulated pension arrears to retirees.

However, some pensioners, after receiving their alerts, said they were unsure if what was paid to them covered the nine years pension arrears dating back to 2014, or completion of the remaining half of the monthly pension  which the present administration has been paying since it came on board, nine months ago.  Clarifying on the confusion, Akpara said about N9 billion has gone into  clearing the arrears, adding that the period covered  went beyond 2014.

“As we speak, we have done over N9 billion and still counting. It might increase to an amount that is very high, but we are still doing it,” the Finance Commissioner said.

He also disclosed that government did not borrow to clear the arrears, adding that the payment was made in compliance with the agreement government reached with the leadership of Nigeria Union of Pensioners (NUP), Abia Stsye branch.

“Honestly, we did not borrow to offset the pension arrears because of the prudence of the government,” Akpara said.

According to him, “Government did have an arrangement with the Nigerian Union of Pensioners (NUP) and His Excellency did exactly what was agreed on.

“And I will say he over did. So what we agreed with them, His Excellency has done; and they are happy about it,” he said.

He parried questions on what was actually paid to the pensioners but stressed: “We had an agreement with the NUP and the agreement is to pay them arrears of pensions and that is exactly what the government has done and they (pensioners) are happy about that. You cannot talk to about 13, 000 pensioners at a time, they have a leader that negotiated for them and we did exactly what was agreed.”

The Commissioner said that Governor Alex Otti should be commended for the bold step to improve the welfare of the Senior Citizens.

“The days are hard, things are hard and we all know it. So, even a government owning up to do what others have not done, even in the past, we need an applause. Some pensioners got N8 million . It is not a mean thing to do.

 “So, we should applaud him (Governor Otti) and ask that God gives him grace to do more,” the Commissioner said.

Earlier, the Commissioner for Information and Culture, Prince Okey Kanu, had told newsmen that a Help Desk has been created in the Ministry of Finance to resolve issues arising from the pension arrears payment, adding that the Governor has ordered that henceforth, pensioners should be paid their full pensions and must be receive their pensions same day civil servants are paid their salaries.

“Following the recent pension payment, His Excellency, Dr Alex Otti, OFR, has ordered that our pensionsrs be paid on the 28th of every month, just  like civil servants in the state. He said going forward, they will be paid their full pensions,” Kanu said.

“And arising from issues associated with the payment of the pension arrears, the Ministry of Finance has set up a Help Desk that will address issues of those whose names may be skipped.

“The bottom line there is to ensure that that process is smooth, without issues,” Kanu said.

Kanu also said that the state government has concluded plans to introduce contributory pension scheme for Abia civil servants.

Also speaking on the pension arrears payment, Special Adviser to the Governor on Media and Publicity, Mr Ferdinand Ekeoma, said pensions owed the retired workers prior to 2014 were paid.

Ekeoma disclosed that some pensioners were paid N8 million, while dismissing rumours that government only cleared 50 percent of the pension it owed retirees since it assimed office nine months ago. He argued that if the payment was limited to the nineomths the present administration has been in power, no individual would be paid up to N8 million.

Other resolutions reached by the EXCO, according to the Commissioner for Information, include the approval for the reconstruction of Osisioma junction – Ekeakpara road.

“The state government has approved the reconstruction of the 3.5 kilometre road, from Oisioma junction to Eke Akpara Market. it will be paved with concrete drainage system,” Kanu said.