After nine years of agony and uncertainty, retired employees of the Abia State government are finally seeing a glimmer of hope as Governor Alex Otti fulfills his campaign promise to clear the accumulated pension arrears left by past administrations.
Tears of joy flowed from the senior citizens on Thursday as they began receiving credit alert messages containing varying amounts of money, some even as high as N1.8 million.
Governor Otti, speaking at Christ the King Catholic Church (CKC), Aba, during a Chrism Mass and renewal of priestly vows, assured the pensioners that their suffering would soon come to an end. He stated, “Some of you (pensioners) have been owed since 2014. At the end of today (Thursday) all of you will smile. Check your accounts at the end of business today.”
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True to his word, credit alert messages flooded Abia and beyond, signaling the arrival of the long-awaited funds into the pensioners’ accounts.
Comrade Chukwuemeka Irondi, the state Chairman of the Nigerian Union of Pensioners(NUP), confirmed the positive development, stating, “many people have told me they have received arrears.” He commended Governor Otti for fulfilling his promise and emphasized the governor’s dedication to the well-being of pensioners.
Meanwhile, Chief Emeka Okezie, the Coordinator of the Concerned Abia Pensioners (CAP), revealed that the payment of pension arrears began even earlier than expected. He expressed gratitude, saying, “I have received my own and many others have. Some were paid N1.3m, some N1.7m, some N1.8m and some, more.”
Okezie, who had led protests against the previous administration’s neglect of pensioners, announced plans for a solidarity march to thank Governor Otti for addressing the plight of Abia pensioners.
Governor Otti, who had initially aimed to clear the pension arrears by December of the previous year, extended his deadline due to unforeseen challenges. He reassured retirees that their accumulated arrears would be settled by the end of March 2024.
The long-awaited relief brings a sense of closure and hope for Abia’s retired workforce, marking the end of nearly a decade of financial struggle and uncertainty.
While many argue that the governor deserves no praise, as paying retiree’s pension is part of his job description, economists say the action will significantly boost the state’s economy, describing it as “Progressive redistribution.”
They note that the cash paid as a pension to the citizens will be spent by those citizens, generating commerce that the state can later tax.
It could be recalled that Otti abolished the jumbo pension for ex-governors earlier this month, before moving to pay the retirees’ pension.
Financial analysts noted that the fat cats [governors] that previously got these pensions would not have spent them but left that cash in a bank to rot and earn interest. This they said, would not contribute meaningfully to the economic growth of the state.
In essence, the payment of pension arrears not only benefits individual pensioners but also contributes to the broader economic well-being of Abia State by stimulating growth, improving living standards, and fostering social cohesion.
Below are a few benefits of pension payment to retired employees, according to economists:
Economic Stimulus: The influx of funds into the accounts of retired employees serves as an economic stimulus, as the pensioners are likely to spend the money on goods and services within the state. This increased spending can stimulate economic activity, benefiting local businesses and contributing to the overall growth of the state’s economy.
Improved Living Standards: The receipt of pension arrears allows retired workers to improve their living standards. With access to funds that were previously withheld, pensioners can meet their basic needs, invest in healthcare, and afford other essential services, thereby enhancing their overall quality of life.
Reduction in Financial Strain: For many retirees who have been waiting for years to receive their pension arrears, the payment brings relief from financial strain. The sudden availability of funds can alleviate debt burdens, prevent eviction or foreclosure, and reduce reliance on social welfare programs, ultimately easing the financial burden on both the retirees and the government.
Boost in Consumer Confidence: The timely payment of pension arrears instills confidence in the government’s ability to fulfill its obligations. This boost in confidence can have a positive ripple effect on consumer sentiment, encouraging spending and investment behavior that further supports economic growth and stability within the state.