A Review of the Nigerian Energy Industry

Osun pays N37.9bn pension benefits in 3 years

National Pension Commission17 August 2014, Sweetcrude, Lagos – Osun State Government has paid N37.9 billion as pension and gratuity to retirees in the state in the last three years.

Commissioner for Finance, Budget and Economic Planning, Dr. Wale Bolorunduro, who disclosed this, said that N24.3 billion was paid to retirees in the state while N13.6 billion was paid to those at the local government councils.

He noted that the state government had committed huge sum of money for the welfare of the retired workers despite challenges posed by the dwindling revenue to the state from the federation account.

According to him, “despite challenges posed by the dwindling revenue to the state from the Federal Government, the state government has paid a total sum of N24.3 billion to pensioners as pension and gratuity to retired workers in the state…while the local government staff, including teaching staff of primary schools and non-teaching staff of the local governments, had received N13.6billion”.

He also said: “The huge 142 percent pension liabilities the current administration inherited from the last administration is another critical issue that need clarification for the benefit of the citizens of the state. This was as a result of the refusal of the most of the retired workers to join the new contributory pension scheme and despite their unwillingness the PDP government granted the retirement without considering the cash flow implication and this has great impact on the state’s finances”.

Bolorunduro assured that the retirees would continue to enjoy monthly benefit and disclosed that the current administration had increased the monthly pension obligations to retirees from N250 million to N600 million.

On the actual debt of the state, Bolorunduro said this stood at N39 billion, describing it as sustainable.

He insisted that the total debt of the state was manageable, explaining that the state had the capacity to carry out its day to day duties to all citizens of the state.

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