Bauchi begins N11.7bn gratuity payment to retirees

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The Bauchi State Government has started the payment of N11.7 billion in outstanding gratuities owed to 5,736 retired civil servants whose retirement benefits have remained unpaid since 2012.

Deputy Governor Auwal Jatau, who made the announcement on behalf of Governor Bala Mohammed, explained that the payment forms part of the administration’s renewed efforts to tackle pension liabilities inherited from previous governments.

Government records that have been validated put the total outstanding gratuity liability at N11,704,200,221.83, covering retirees whose benefits became due between 2012 and 2016.

Of the total amount, N6,132,505,444.44 is owed to 3,570 retirees from the state government, while 2,256 local government retirees are owed N5,579,694,779.39.

The state government has initially approved N10 billion for the payment exercise. The funds will be released in phases, taking into consideration factors such as the age of the outstanding debt, available resources, complete documentation and successful verification of beneficiaries.

A committee headed by former Secretary to the State Government, Alhaji Sabiu Baba, is overseeing the process alongside the Bauchi State Contributory Pension Commission, which is tasked with checking and reconciling pensioners’ records.

The initial phase of the exercise will focus on local government retirees whose benefits date from 2012 to 2013, as well as state civil service retirees from 2013.

According to the government, retirees who are not included in the first phase will still receive their entitlements, as the payment programme is expected to continue until the outstanding backlog is fully addressed.

The government noted that a significant number of pensioners had been waiting for over 10 years to receive their benefits, with some reportedly passing away before their entitlements could be paid.

As part of efforts to ensure a smooth process, the pension commission, Head of Service and participating commercial banks were instructed to eliminate bureaucratic bottlenecks, corruption and favouritism in the disbursement process.

Verification teams were also directed to prioritise elderly and physically challenged retirees during the screening exercise.

Pensioners were encouraged to cooperate with verification officials and submit all necessary documents to enable the payment process.

The latest move follows earlier steps taken by the state government to address its pension obligations. In its 2025 budget, the government earmarked N5 billion for gratuities and N8.5 billion for pensions under its social benefits programme.

In addition to addressing the existing backlog, the government said it was pursuing the development of a fully automated pension system to prevent the future accumulation of unpaid retirement benefits.