The Abia State Government has announced plans to make annual budgetary provisions for the payment of gratuities from 2026 to 2031 as part of measures aimed at clearing outstanding obligations and preventing the accumulation of fresh arrears.
Commissioner for Information, Prince Okey Kanu, disclosed this during an interview monitored by ABN TV, saying the decision followed a review of the state’s gratuity liabilities, currently put at about ₦61.8 billion.
According to Kanu, a breakdown of the outstanding obligations showed that ₦7.2 billion in gratuities accumulated between 2001 and 2010, while another ₦43.6 billion accrued between 2011 and May 2023.
He added that about ₦10.9 billion had accrued from May 2023, when the current administration assumed office, to date.
The Commissioner explained that under the new arrangement, gratuity payments would be incorporated into the state’s Medium-Term Expenditure Framework from 2026 to 2031, with provisions also expected to be reflected in subsequent annual budgets.
Kanu said the initiative was designed to establish a sustainable system for settling gratuity obligations rather than allowing arrears to continue accumulating.
He further disclosed that payments would be made directly to verified beneficiaries through a dedicated gratuity payment platform linked to the state’s Treasury Single Account (TSA).
According to him, beneficiaries would undergo biometric validation as part of measures to eliminate duplicate records, strengthen transparency and prevent fraudulent payments.
The Commissioner said the government expects the arrangement to guarantee a more consistent payment of gratuities and prevent a recurrence of the large backlog accumulated over the years.
The development comes amid renewed attention to the welfare of retired workers in Abia State and ongoing efforts by the government to address longstanding pension and gratuity obligations.
