Governor Alex Otti of Abia State has announced his administration will start the gradual payment of pension and gratuity arrears owed to retirees for 23 years . The decision follows the submission of a report from a committee set up with the Nigerian Union of Pensioners (NUP) to verify the massive liability .
The total verified outstanding pension and gratuity arrears exceed 60 billion Naira, a figure the Governor described as disheartening and dating back to 2001 . He stated that government is a continuous process and his administration is unafraid to confront the inherited liabilities . He assured pensioners that their gratuity would be paid gradually, hinting at a phased payment plan .
This move aims to resolve a long-standing crisis that has caused significant hardship for retirees. The announcement comes amid recent complaints from pensioner groups about delayed payments and the contentious 2024 Memorandum of Agreement that proposed retirees forfeit gratuity for full monthly pensions . Pensioners strongly rejected that agreement, arguing that gratuity is a constitutional right that cannot be signed away by any union .
The state government has now completed a thorough review of all pending pension claims in collaboration with the pension union . The verified arrears represent one of the largest sub-national pension liabilities in Nigeria. The government's commitment to a gradual payment process acknowledges the financial challenge of clearing the entire debt at once .
The pension issue has been a source of anguish for retirees who served the state. Just this week, a pressure group within the NUP, the Abia Pensioners Forum, held a press briefing to lament what they called an "agonizing delay" in payment of their benefits . The group's coordinator, Barrister Okey Kanu, warned that pensioners would not accept any attempt to pay their arrears in percentages, insisting that both pensions and gratuities must be paid in full .
Separately, a Joint Action Committee of retirees from state parastatals petitioned the governor in July 2025 over the non-payment of 13 months of pension arrears . Their petition noted that 55 pensioners had been omitted from payments since January 2025, despite being verified . They detailed how the non-payment has led to loss of accommodation, an inability to pay school fees, and struggles to afford medication .
Beyond the pension crisis, Governor Otti used the media chat to address other state affairs. He confirmed that workers' salaries are up to date, emphasizing that staff welfare remains a top priority for his government . He also addressed a payment glitch affecting newly recruited teachers, instructing officials to ensure all affected teachers were paid by the end of the weekend .
The state's recruitment drive for 4,000 teachers has garnered 27,980 applications in two weeks, a sign of public interest in the administration . The governor assured that the recruitment process would remain transparent and merit-based . Recruitment of medical personnel is also nearly complete, with some applicants coming from outside Nigeria .
In other developments, the Governor highlighted that Abia was recently ranked the most prepared state for medical emergencies in a national rating by SBM Intelligence . The state also topped the Kevlin Index for intra-city transport affordability, with an average trip costing about 542 Naira, significantly lower than the most expensive state where a trip costs 1,399 Naira . Newly acquired electric buses are set to be deployed before year-end to further reduce transport costs .
On infrastructure, road construction has resumed across the state after the rainy season, with contractors directed to fast-track work . In land administration, the state has issued 30,562 Certificates of Occupancy in two-and-a-half years under an automated "C-of-O in 30 days" policy, a number the government says surpasses what some states achieve in eight years .
The Abia State College of Education (Technical) has also secured accreditation for 24 courses that had lost recognition under a past administration . Development projects are progressing at Abia State University and Dr Ogbonnaya Onu Polytechnic .
The National Pension Commission (PenCom) has previously commended Governor Otti for his commitment to setting up a seamless pension scheme . During a visit in December 2024, the Director-General of PenCom noted that Abia was poised to become a model for sustainable development in employee welfare for the South-East region .
As the state begins the complex task of settling the N60 billion pension arrears, retirees and observers will be watching the implementation of the gradual payment plan closely. The success of this initiative is crucial for bringing financial relief to pensioners who have waited for over two decades.