The Abia State Authorities has introduced plans to start the settlement of long-standing wage arrears owed to former Native Authorities councillors.
This is for these who served between 1999 and 2022, in what the administration describes as a part of a broader effort to wash up inherited fiscal and governance liabilities.
Governor Alex Otti disclosed this throughout a gathering with members of the Affiliation of Former Elected Councillors in Umuahia on Sunday.
In response to the governor, cost of the arrears amassed over greater than twenty years will start earlier than the tip of February and might be executed in batches.
What they’re saying
Otti defined that when the problem was first dropped at his consideration, he was not absolutely briefed on its complexity, together with a number of court docket circumstances and partial funds made beneath court docket orders by earlier administrations. He stated his authorities determined to harmonise all claims and resolve the disputes holistically, noting that management calls for confronting inherited issues reasonably than suspending them.
- “All staff deserve equal remedy, whether or not they’re core civil servants, non-core workers or pensioners,” the governor stated, stressing that his administration stands for justice and equity.
The governor counseled the affiliation for withdrawing all pending court docket circumstances associated to the unpaid salaries, describing the transfer as a confidence-building step. He stated the federal government has since harmonised all claims to make sure a clear and orderly settlement course of. With all litigations resolved, Otti assured that funds would start earlier than the month-end.
In a gesture geared toward institutional readability, the governor directed the lawmaker representing Isiala Ngwa North and South Constituency, Chief Ginger Onwusibe, alongside the Commissioner for Native Authorities and Chieftaincy Affairs, Mr Uzo Nwachukwu, to formalise the construction of the affiliation.
Backstory
The choice to clear the arrears comes amid ongoing fiscal reforms beneath the present administration.
BusinessTimes had earlier reported that the Abia State Authorities has considerably decreased its inherited debt burden since Governor Otti assumed workplace in Could 2023. Information from the Debt Administration Workplace present that the state’s debt inventory declined to N66 billion as of December 2024 from N138 billion inherited from earlier administrations.
Inside this era, the state reportedly paid down N72 billion in excellent obligations with out contracting new debt, reflecting a coverage concentrate on fiscal self-discipline, credibility, and strategic renegotiation of presidency liabilities. The administration has constantly linked this debt discount to its capacity to satisfy recurrent obligations, together with salaries and pensions, whereas funding precedence infrastructure tasks.
Governor Otti has maintained that addressing legacy liabilities comparable to unpaid wages is vital to restoring confidence in public establishments and strengthening Abia’s monetary standing.
What you must know
BusinessTimes beforehand reported that Abia State Governor, Alex Otti, introduced a N1.016 trillion price range proposal for the 2026 fiscal 12 months to the Abia State Home of Meeting for consideration.
The proposed 2026 appropriation invoice, titled the “Funds of Acceleration and New Potentialities,” represented a 13% improve over the 2025 price range, reflecting an expansionary fiscal posture by the state authorities.
Of the full price range estimate, N811.8 billion (80%) was allotted to capital expenditure, whereas N204.4 billion (20%) was put aside for recurrent spending, underscoring the administration’s concentrate on infrastructure and long-term financial progress.
The capital expenditure part mirrored a 32% improve in comparison with the 2025 capital price range, aligning with the federal government’s emphasis on roads, city renewal, healthcare, training, and different growth-supporting tasks.
Recurrent expenditure rose by 33% from N136 billion in 2025, pushed by expanded administrative features and better personnel prices following the addition of 1000’s of recent staff to the state payroll.
