APC Challenges Abia Government Over ₦70bn Pension and Gratuity Debt

The Abia State pension controversy has taken a fresh turn as the All Progressives Congress (APC) accuses the state government of inflating pension and gratuity figures and demands that Governor Alex Otti publish the names and payment records of retirees it says have been paid.

The APC in Abia State has challenged the state government over its reported pension and gratuity liabilities, questioning how the government arrived at figures exceeding ₦70 billion. The party is demanding transparency, including the publication of retirees’ names, amounts paid and payment records.

The All Progressives Congress (APC) in Abia State has challenged the state government over its handling of pensions and gratuities owed to retired civil servants, questioning how the administration arrived at figures exceeding ₦70 billion.

The party also accused the government of allegedly inflating pension and gratuity liabilities and demanded that Governor Alex Otti publish the names of retirees who have been paid, the amounts involved and the relevant payment records.

The APC made the allegations in a statement signed by its Abia State Publicity Secretary, Iche Aguoru, and made available to journalists.

The party, however, commended the state government for what it described as a renewed effort to settle outstanding gratuities owed to retirees.

According to the APC, Governor Otti had, about two years ago, announced that his administration had cleared the backlog of pension arrears owed to retirees.

The party said the announcement received widespread publicity and attracted commendation.

However, the APC claimed that some retirees later disputed the government’s position and alleged that they had not received their full entitlements.

The party therefore called for greater transparency in the management and payment of pensions and gratuities in the state.

APC Questions Abia’s Pension Figures

A major part of the APC’s criticism centres on the figures it said were contained in pension records and the handover documents inherited by the Otti administration.

The party claimed that available records from the pension office showed that gratuities owed to retirees for the period between 2001 and 2010 stood at about ₦3.8 billion.

It added that outstanding gratuities owed to teachers and local government workers were less than ₦100 million, based on what it described as available statistics.

The APC further claimed that previous administrations had been paying some of the outstanding pensions and gratuities in batches and instalments.

Consequently, it questioned the basis for the state government’s reported payment of ₦7.2 billion for obligations covering the period between 2001 and 2010.

The party asked:

“Where did the Abia State Government manufacture the data with which it claimed to have paid ₦7.2 billion between 2001 and 2010?”

The APC said the figures should be compared with the handover documents allegedly presented to the Otti administration when it assumed office.

It argued that if the outstanding gratuity obligation as of December 2021 was ₦3.8 billion, the government should explain the alleged difference of about ₦3.4 billion.

Party Raises Fresh Questions Over ₦11bn Gratuity Claim

The APC also questioned the government’s reported accumulation of about ₦11 billion in gratuity obligations between 2023 and 2026.

According to the party, the figure requires clarification, particularly because it claimed the government had not reviewed the pensions and gratuities of the affected retirees.

The APC therefore asked the state government to explain how the figures were calculated.

It further challenged the government over what it described as claims that more than ₦70 billion was owed in pensions and gratuities.

The party described the figures as “grossly over-bloated” and alleged that pension liabilities may have been padded.

However, the APC did not provide independent documentary evidence in the statement to substantiate the allegation.

The party also alleged that a senior official in the pension office resigned after reportedly refusing to participate in what it described as an alleged “padding arrangement.”

The allegation could not be independently verified from the information contained in the statement.

APC Demands Names of Retirees Paid by Otti Government

The opposition party said the government should provide clear evidence of its pension and gratuity payments.

It specifically demanded the publication of the names of retirees who have been paid, the amounts paid to each beneficiary and the relevant payment records.

The APC said this would enable Abians to verify the government’s claims.

The party also noted that some pensioners who, according to it, fall within the category the government claimed to have settled are still waiting for their gratuities.

“If the government has genuinely paid these retirees, then there should be no difficulty in publishing the names, amounts and payment records,” the party said.

APC Links Pension Payments to Federal Allocations

The APC also attributed the increased financial capacity of state governments to the Federal Government’s revenue position following the removal of the petrol subsidy in 2023.

The party praised President Bola Ahmed Tinubu for what it described as the release of increased funds to states and other sub-national governments.

According to the APC, Abia’s monthly allocation has risen significantly compared with previous years.

The party claimed that the state previously received between ₦2 billion and ₦4 billion monthly but now receives an average of about ₦40 billion from federation accounts.

It argued that the increased revenue should enable the state to settle outstanding obligations to workers and retirees while also funding infrastructure and human capital development.

The APC further claimed that neighbouring states, including Enugu, Imo, Anambra and Ebonyi, had settled pension and gratuity liabilities inherited from previous administrations.

It described Abia as an exception and called on the Otti administration to provide detailed explanations for its pension figures.

APC Calls for Transparency in Abia Pension Payments

The APC urged the Abia State Government to address the controversy with verifiable facts and figures rather than what it described as propaganda.

The party said retirees should not be used as a political tool and urged the government to ensure transparency and accountability in the administration of pensions and gratuities.

It added that it would continue to support Abia retirees and demand what it described as transparency, accountability and justice for senior citizens.

The APC’s claims and figures represent the position of the opposition party. The allegations should therefore be independently verified, while the Abia State Government’s response would be necessary to provide the other side of the controversy.