Abia State Government Begins Payment of ₦61.8 Billion Gratuity Arrears, Targets 24-Year Backlog

The Abia State Government has commenced the payment of outstanding gratuities to retired state and local government workers, beginning a major effort to address a staggering ₦61.8 billion liability accumulated over more than two decades.

The outstanding gratuity burden, which covers retirees from 2001 to 2025, was uncovered and validated by a Gratuity Committee established by the administration of Governor Alex Otti to ascertain the true extent of the arrears and recommend practical modalities and timelines for their settlement.

The Commissioner for Information, Prince Okey Kanu, disclosed the development on Monday, August 24, 2026, while briefing newsmen at the Government House, Umuahia, on the outcome of the State Executive Council meeting presided over by State Governor, Dr. Alex Chioma Otti, OFR.

According to the Commissioner, the committee was specifically mandated to carry out a comprehensive review and validation of all cumulative gratuity arrears owed to retired state and local government workers between 2001 and 2025.

The exercise, he said, involved a detailed examination of records from both the Abia State Pensions Board and the Local Government Pensions Board.

The findings revealed that the state inherited a total outstanding gratuity liability of ₦61.8 billion, covering retirees across both tiers of government.

A breakdown of the figure showed that ₦7.2 billion accrued between 2001 and 2010, while a massive ₦43.6 billion accumulated between 2011 and May 29, 2023. Another ₦10.9 billion accrued from May 30, 2023, to the present.

Prince Kanu said the committee’s findings further revealed the extent to which gratuity payments had remained largely unattended to over the years, particularly for workers who retired 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,” Prince Kanu explained.

Faced with the enormous size of the liability, the prolonged hardship endured by retirees and the financial realities of the state, the Gratuity Committee recommended a structured and sustainable payment plan.

Under the arrangement, the annual financial implications of the gratuity payments from 2026 to 2031 would be incorporated into the state’s Medium-Term Expenditure Framework and subsequently captured in the annual budgets.

The move is expected to guarantee a consistent and sustainable payment process while preventing the accumulation of fresh gratuity arrears in the future.

Prince Kanu explained that the payment system would be technology-driven, transparent and carefully monitored. Payments would be made directly to verified beneficiaries through a dedicated gratuity payment platform linked to the state’s Treasury Single Account.

Beneficiaries would also undergo biometric validation as part of measures designed to eliminate duplication, prevent fraud and ensure that payments reach the rightful retirees.

The government, he said, would prioritize the oldest outstanding arrears while spreading the payments across subsequent years in a manner that takes into consideration the state’s annual expenditure obligations and other pressing social needs.

Speaking on the magnitude of the inherited burden, the Commissioner said the present administration could not realistically erase 24 years of accumulated arrears within its first three years in office.

“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 said.

He, however, assured retirees that the administration of Governor Alex Otti remained committed to progressively addressing their concerns and settling the long-standing gratuity obligations.

The Commissioner disclosed that the process had already moved beyond planning, as some verified beneficiaries had received their final gratuity payments.

To ensure that retirees and beneficiaries with complaints or enquiries are adequately attended to, the Abia State Government has also established a dedicated support channel through the Abia State Citizens Contact Centre.

Prince Kanu said affected retirees could reach the helpline on 0800-000-0232 between 8:00 a.m. and 4:00 p.m. on working days.

Complaints and enquiries can also be submitted through contactcenter@abiastate.gov.ng, which will remain available for correspondence 24 hours daily.

The commencement of the gratuity payments marks a significant step by the Otti administration towards confronting one of the most persistent welfare challenges inherited by the state government, offering renewed hope to thousands of retirees who have waited years fo r the benefits earned during their years of service.