Benue pension arrears balloon from N400 million to N1 billion in three years – Finance Commissioner
The Benue State Authorities has revealed that the backlog of pension arrears within the state has surged from N400 million to N1 billion inside three years following the invention of 1000’s of unrecorded pensioners throughout a current knowledge verification train.
The federal government, nevertheless, assured employees and retirees of its dedication to the continual settlement of excellent funds.
This was disclosed by the State Commissioner for Finance, Mr. Michael Oglegba, in an interview with the Information Company of Nigeria (NAN) in Makurdi on Wednesday.
Oglegba acknowledged that the present administration inherited important {financial} obligations, together with a backlog of 48 months in unpaid entitlements for each civil servants and pensioners.
“When this administration got here in, we met a backlog of 48 months for pensioners and civil servants. The funds have been staggered – some have been owed 12 months, whereas others have been owed seven months,” he stated.
“We got here into workplace and found that for 3 years, some pensioners weren’t captured in authorities knowledge. We went forward to seize them, and because of this, the quantity of pension arrears grew from N400 million to N1 billion,” he stated.
Pension fee stays a problem – Benue govt
In line with Oglegba, the federal government has to this point cleared 5 months of wage arrears in 2024 and is planning to pay one other 5 months in 2025. These funds have been captured within the 2025 price range and will probably be applied relying on fund availability.
He defined that the federal government has adopted a phased method to the settlement of wage backlogs, focusing on particular ministries, departments, and businesses (MDAs) at intervals.
“Up to now, now we have completed paying the backlog of Benue State College (BSU) and a few MDAs. However those who have been owed longer than six or seven months, we’re paying off steadily,” he famous.
“Typically we choose ministries and pay, whereas different instances we choose MDAs inside a ministry and pay. At no time have we stated that the federal government has cleared your complete backlog of wage arrears.”
The commissioner emphasised that whereas progress has been made, important challenges stay, notably within the space of pensions. He disclosed that over a three-year interval, many pensioners weren’t captured within the state’s information, and that the revalidation train uncovered a a lot bigger {financial} obligation than beforehand estimated.
Revalidation drives financial savings and restructuring
Oglegba stated the funds saved from the civil service revalidation train have been redirected to settle a part of the rising pension obligations. He famous that the train additionally helped cut back the month-to-month wage invoice and revealed the presence of ghost employees within the system.
The commissioner additional defined the construction of wage disbursement within the state, which incorporates core civil servants, choose MDAs, and help to establishments like BSU and the Benue State College Educating Hospital (BSUTH).
“We don’t describe BSU and BSUTH workers as civil servants, however we help them month-to-month in order that they’ll pay their employees. Apart from these two, we additionally pay pension,” Oglegba clarified.
He additionally famous that the federal government has applied a brand new minimal wage, growing salaries from N18,000 to N75,000 for employees on grade ranges seven to seventeen, and from N30,000 to N75,000 for ranges one to 6.
What you must know
Benue State civil servants and pensioners have endured wage and pension arrears stretching again so far as 4 years in some circumstances.
- The revalidation train carried out by the federal government helped uncover ghost employees and added unregistered pensioners to the official payroll.
- The pension arrears alone now stand at roughly N1 billion, in accordance with authorities estimates.
- The 2025 price range consists of provisions to settle 5 extra months of wage arrears, as a part of a phased fee plan.
