Abia Sets Out Formula, Timeline to Offset N17.6bn Salary Arrears Owed Tertiary Institutions, Agencies

Emmanuel Ugwu-Nwogo in Umuahia

Following the restiveness of workers, the Abia State Government has finally specified the  exact the formula it would use to clear the N17, 629, 767, 340.9 salary arrears it inherited from the immediate past administration.

The Commissioner for Information and Culture, Prince Okey Kanu, spelt out the modality yesterday while briefing journalists on the outcome of this week’s State Executive Council meeting, saying that N1.5 billion would be disbursed every month for arrears.

He said that government has also fixed a timeline of 12 months to offset the entire salary arrears, adding that payments by instalments would start from August.

Governor Alex Otti had consistently pledged his commitment to paying off the arrears in fulfilment of his 2023 campaign promises without saying how he was going to do it.

But Kanu said that the payment formula emerged at the weekend when the governor met with the management of the Abia State University Uturu (ABSU), at his Nvosi country home to discuss the funding issues facing the institution.

He said that the meeting between Governor Otti and ABSU management was fruitful as the governor directed the accountant general of the state, “to ensure that within the week, all outstanding salaries are paid” to both the “verified staff and those yet to be verified”.

Kanu said that the meeting “offered the governor the opportunity to bring those lingering issues (affecting ABSU) to an end”.

Giving further insights into the lingering issue of payment of the inherited salary arrears, the Commissioner for Finance, Mr. Mike Akpara, said that after “due verification” the arrears rose to N17.6 billion as against the initial estimated amount of N16.5 billion.

He said that the workers affected by the backlog of unpaid salaries running into upwards of 33 months were from state-owned tertiary institutions and some agencies.

Akpara gave the breakdown as follows: ABSU with 11 months of arrears totaling N3.1 billion;  Health Management Board(HMB) with N1.5 billion representing 15 months of arrears; Abia State University Teaching Hospital(ABSUTH), Aba, 21 months, N3.1 billion; Abia State College of Education, Technical, Arochukwu(ASCETA), 22 months, N540 million.

Others are Abia State Polytechnic, Aba (Abiapoly) with the highest arrears of 33 months amounting to N4.5 billion; Secondary Education Management Board (SEMB), 15 months, N3.6 billion; Abia State Universal Basic Education Board(ASUBEB), eight months, N1.089 billion.

Also in the mix are Abia Comet Football Club which owed footballers and other staff N14.1 million of one month unpaid salary; Abia State College of Health Sciences, Aba with N57.3 million of two months arrears, and Abia State Signage and Advertising Agency, which accumulated N3.2 million of unpaid salaries.

The finance commissioner explained that the government chose to offset the salary arrears in instalments because it would negatively impact government businesses if a whopping N17.6 billion is removed to settle salary arrears at once.

“If we pay in one swoop, the government will close,” he said.