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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 hundreds of unrecorded pensioners throughout a current information verification train.

The federal government, nonetheless, 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 monetary 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 had been staggered – some had been owed 12 months, whereas others had been owed seven months,” he mentioned.

“We got here into workplace and found that for 3 years, some pensioners weren’t captured in authorities information. We went forward to seize them, and because of this, the quantity of pension arrears grew from N400 million to N1 billion,” he mentioned.

Pension cost stays a problem – Benue govt 

In line with Oglegba, the federal government has up to now 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 finances and can be carried out relying on fund availability.

He defined that the federal government has adopted a phased strategy to the settlement of wage backlogs, concentrating on particular ministries, departments, and businesses (MDAs) at intervals.

“Thus far, we’ve got completed paying the backlog of Benue State University (BSU) and a few MDAs. However those who had been owed longer than six or seven months, we’re paying off step by step,” he famous.

Generally we choose ministries and pay, whereas different occasions we choose MDAs inside a ministry and pay. At no time have we mentioned that the federal government has cleared your entire 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 data, and that the revalidation train uncovered a a lot bigger monetary obligation than beforehand estimated.

Revalidation drives financial savings and restructuring

Oglegba mentioned the funds saved from the civil service revalidation train had been redirected to settle a part of the rising pension obligations. He famous that the train additionally helped scale 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 University 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 will pay their employees. Apart from these two, we additionally pay pension,” Oglegba clarified.

He additionally famous that the federal government has carried out a brand new minimal wage, rising 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 it is best to 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 performed 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, based on authorities estimates.
  • The 2025 finances consists of provisions to settle 5 extra months of wage arrears, as a part of a phased cost plan.

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