Benue pension arrears balloon from N400 million to N1 billion in three years – Finance Commissioner 

The government, however, assured workers and retirees of its commitment to the continuous settlement of outstanding payments.

This was disclosed by the State Commissioner for Finance, Mr. Michael Oglegba, in an interview with the News Agency of Nigeria (NAN) in Makurdi on Wednesday.

Oglegba stated that the current administration inherited significant financial obligations, including a backlog of 48 months in unpaid entitlements for both civil servants and pensioners.

“When this administration came in, we met a backlog of 48 months for pensioners and civil servants. The payments were staggered – some were owed 12 months, while others were owed seven months,” he said.

“We came into office and discovered that for three years, some pensioners were not captured in government data. We went ahead to capture them, and as a result, the amount of pension arrears grew from N400 million to N1 billion,” he said.

According to Oglegba, the government has so far cleared five months of salary arrears in 2024 and is planning to pay another five months in 2025. These payments have been captured in the 2025 budget and will be implemented depending on fund availability.

He explained that the government has adopted a phased approach to the settlement of salary backlogs, targeting specific ministries, departments, and agencies (MDAs) at intervals.

“So far, we have finished paying the backlog of Benue State University (BSU) and some MDAs. But those that were owed longer than six or seven months, we are paying off gradually,” he noted.

“Sometimes we select ministries and pay, while other times we select MDAs within a ministry and pay. At no time have we said that the government has cleared the entire backlog of salary arrears.” 

The commissioner emphasized that while progress has been made, significant challenges remain, particularly in the area of pensions. He disclosed that over a three-year period, many pensioners were not captured in the state’s records, and that the revalidation exercise uncovered a much larger financial obligation than previously estimated.

Oglegba said the funds saved from the civil service revalidation exercise were redirected to settle part of the growing pension obligations. He noted that the exercise also helped reduce the monthly wage bill and revealed the presence of ghost workers in the system.

The commissioner further explained the structure of salary disbursement in the state, which includes core civil servants, select MDAs, and support to institutions like BSU and the Benue State University Teaching Hospital (BSUTH).

“We don’t describe BSU and BSUTH staff as civil servants, but we support them monthly so that they can pay their workers. Aside from these two, we also pay pension,” Oglegba clarified.

He also noted that the government has implemented a new minimum wage, increasing salaries from N18,000 to N75,000 for workers on grade levels seven to seventeen, and from N30,000 to N75,000 for levels one to six.

Benue State civil servants and pensioners have endured salary and pension arrears stretching back as far as four years in some cases.

Benue State civil servants and pensioners have endured salary and pension arrears stretching back as far as four years in some cases.