Abia to commence payment of N61.8bn gratuity arrears

Governor Alex Otti

Abia State Government has approved the commencement of payment of outstanding gratuities owed verified state and local government retirees, with the N61.8 billion backlog targeted for clearance by 2031.

The State Commissioner for Information, Prince Okey Kanu, disclosed this to journalists late Monday after the weekly State Executive Council meeting.

Kanu said the N61.8 billion liability comprised verified gratuity obligations owed to state and local government retirees between 2001 and 2025.

He said a reconciliation exercise showed that N7.2 billion was outstanding for the 2001–2010 period, while another N3.6 billion accumulated between 2011 and May 2023. He added that a further N10.9 billion in gratuity obligations had been verified from May 30, 2023.

The commissioner, who spoke alongside the Commissioner for Finance, Mr Uwoma Ukandu; the Accountant-General of the State, Njum Onyemena; and the Special Adviser to the Governor on Media and Publicity, Mr Ferdinand Ekeoma, said the government had set 2031 as the target for clearing the backlog.

Kanu explained that the government could not clear the 24-year-old backlog immediately without negatively affecting other areas of public spending.

He said the state had therefore decided to incorporate gratuity provisions into its Medium-Term Expenditure Framework and annual budgets from 2026 to 2031.

“This strategy was designed not only to clear the inherited arrears but also to prevent the accumulation of fresh liabilities,” he said.

ABSU strike

Kanu also addressed the ongoing dispute at Abia State University, Uturu, where an academic staff member was suspended indefinitely amid an indefinite strike by members of the Academic Staff Union over alleged unpaid entitlements.

He said the state government had no role in the lecturer’s suspension, adding that Governor Alex Otti had approved the demands of the Academic Staff Union as far back as April, but implementation was delayed by administrative processes.

According to him, outstanding check-off dues had now been paid, while the new salary structure, tagged the Consolidated Academic Teaching Allowance (ASCTA), and other related entitlements had been processed for payment alongside the August 2026 salaries.

He added that a new salary structure for other categories of staff of the university had also been processed.

Join Our Channels

Taboola Recommendation Widget