In a piece titled “The ₦70 Billion Outstanding Gratuity of Abia Workers and the Urgent Need for Government Action” Chief Obinna Oriaku highlighted how the Alex Otti government pressured our senior citizens to forgo their gratuity and emplored Gov. Otti to have mercy and emulate his counterparts in Anambra, Imo and Enugu and pay the gratuities of our aged parents who put in so much in service to the state.
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The ₦70 Billion Outstanding Gratuity of Abia Workers and the Urgent Need for Government Action.
Gratuity is a lump-sum payment made an employer to an employee in recognition of long and meritorious service, beyond the regular wages or salary. Typically, a worker must serve at least five years to qualify for gratuity, while ten years of service makes them pensionable according to Nigeria law.
Unfortunately, in Abia State, just like most states , gratuity has become a forgotten obligation. For more than two decades, successive governments have failed to honor this commitment to their workers. Abia State stands out negatively among Nigerian states, as many others have made efforts to address this long-standing burden with the ballooned montly allocation.
States such as Lagos and Ogun have kept faith with their retirees largely because of their adoption of the contributory pension scheme, which provides a sustainable structure for payments. Even states previously caught in the “gratuity conundrum” have begun to defray arrears, thanks to institutional reforms initiated President Bola Ahmed Tinubu’s administration. These reforms have made huge funds available for states and local governments to settle long-overdue obligations.
In contrast, Abia Government has completely shut down the idea of paying gratuities. Disturbingly, reports suggest that the state government insists retirees should forfeit their entitlements. One year after this shocking claim surfaced, the government has yet to issue a formal denial. How can workers be asked to surrender their sweat, their pride of service, in a state that receives about ₦38 billion monthly as revenue.
Across the country, other states are rising to the challenge. Katsina state recently cleared gratuity arrears from 2005 to 2023 with a ₦24 billion payout. Zamfara state spent ₦13.6 billion to offset arrears dating back to 2009. Anambra State allocated ₦7 billion to clear debts incurred during the Willie Obiano administration, while Enugu state committed ₦8 billion instalmental payments to address arrears spanning 2010 to 2023.
Just last week, the Imo State governor, His Excellency Hope Uzodinma not only announced an increase in the minimum wage to ₦104,000 but also approved ₦16 billion as the final tranche of a ₦70 billion gratuity backlog for state and local government retirees which dates back to 2005.
In stark contrast, Abia last paid gratuity to state workers in 2003 and to local government workers in 2002. Occasional, isolated payments have been made to retirees with underlying health conditions or special needs, but these were token gestures. During one such instance, about ₦150 million was disbursed to a handful of retirees during my time in Abia , a mere drop in the ocean compared to the ₦65 billion now outstanding.
Gratuity payments are more than just financial obligations; they are lifelines for pensioners struggling under the weight of economic hardship, worsened ongoing federal reforms. During the last NEC meeting, President Tinubu urged governors to (water the grassroots) ensure that funds available to them reach the grassroots. Settling gratuity arrears is one of the clearest ways to achieve this.
As of November 2022, Abia’s gratuity debt stood at about ₦38 billion. Today, it is estimated to have ballooned to around ₦45 billion following the forced retirement of permanent secretaries and directors who had served eight years in office. For local governments, arrears are projected to be close to ₦25 billion, bringing the total to approximately ₦65 billion.
The Abia State government must deploy part of its ₦38 billion monthly revenue to clear these arrears. Doing so will not only restore dignity to retirees and their families but also prove that the state is committed to ensuring that the benefits of federal reforms trickle down to those who gave their productive years to building Abia.
Failure to act only weakens the government’s credibility, particularly when it claims to have repaid ₦78 billion in debts repayment while these glaring obligationsN70billion are still outstanding.
Abia retirees, or their next of kin, deserve their rightful entitlements. It is not a matter of politics or excuses about past administrations. It is a matter of justice, fairness, and humanity.
©️Ekwedike
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