Abia State Government has begun paying outstanding gratuities owed to retired state and local government workers, starting a phased programme to clear liabilities estimated at N61.8 billion.
Information Commissioner Okey Kanu announced the development after a State Executive Council meeting in Umuahia.
He said the arrears had accumulated over about 24 years and could not realistically be cleared in a single payment cycle.
A review by the state’s Gratuity Committee put obligations accrued between 2001 and 2010 at about N7.2 billion.
Another N43.6 billion accumulated between 2011 and May 29, 2023, while roughly N10.9 billion was recorded from May 30, 2023 onward.
The government said it had decided to confront the inherited backlog through a structured and sustainable payment plan.
Gratuity obligations from 2026 to 2031 are expected to be incorporated into the state’s Medium Term Expenditure Framework and annual budgets.
Officials said the arrangement was designed to clear old liabilities while preventing the creation of new arrears.
Payments will be processed through a dedicated digital platform linked to the state Treasury Single Account.
Biometric verification is being used to reduce duplication and fraud.
The oldest outstanding obligations will receive priority.
Finance Commissioner Uwaoma Ukandu said the current phase covered gratuities dating from 2001 to 2010.
He said payments would continue in stages because the total liability was too large to settle at once.
Government also said some verified beneficiaries had already received their full gratuities.
A contact centre has been opened for retirees seeking information about the exercise.
In a related labour development, the government said issues behind the recent industrial action by the Academic Staff Union of Universities at Abia State University had been resolved.
Outstanding check off dues have been paid and a revised salary scale incorporating academic and teaching allowances is expected to reflect in August 2026 salaries.
The government said the two interventions formed part of a broader commitment to resolve inherited liabilities through dialogue and structured financing.