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Mon, May

States, Pensions

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Abia, Imo, Benue, Ekiti, others worse off
There are concerns over the backlog of remunerations being owed by state governors, as latest BudgIT report reveal that as much as 20 states currently owe pensioners and civil servants up to two years arrears.

A survey conducted by BudgIT revealed that while 20 states are battling to offset pensioners’ gratuities in the last 12 months, other states like Abia, Benue, Oyo, Ekiti, Kogi and Ondo are yet to pay 2017 salaries in addition to outstanding pensions.

According to the survey, majority of the workers owed this backlog include teachers from primary and secondary schools, local government workers and pensioners, among others.

The report also showed that retirees in eight states including Imo, Taraba and Niger state last received full pension entitlements three years ago, while some states have not paid in the last 12 months.

Lagos and Rivers were however identified as the only two states consistent with regular payment of workers’’ remuneration.

BudgIT identified the recent economic downturn which affected the Federal Accounts Allocation Committee (FAAC) disbursement to states and the drastic reduction in the states internally generated revenue (IGR), as the main reasons behind the delays and the inability of these states to run their affairs effectively.

In order to tackle this and offset backlog of salaries and other liabilities, state governors have canvassed on the need for federal government to provide another tranche of Paris Club to clear pile up bills.

But the budget research group insists on tightening of accountability structures by the Federal Government and transparency in use of allocated by the receiving states.

“We hereby ask the Federal Government should tighten its accountability structures for the series of extra-statutory funds that are provided to state government, which currently has reached N1.75tn. We also demand that state government need to be more transparent on the use of the funds,” BudgIT advocated.

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