By Zubairu Idris | Expert Analysis
Katsina, Dec. 19, 2025 – In a significant move to address long-standing financial obligations to its workforce, Katsina State Governor Dikko Radda has approved the release of N21.7 billion for the payment of retirement benefits and death gratuities. This announcement, made via a statement from the State’s Commissioner of Information and Culture, Dr. Bala Salisu-Zango, represents a critical phase in the state’s efforts to clear its backlog of pension liabilities.
The Head of Civil Service, Alhaji Falalu Bawale, detailed the plan at the inaugural meeting of a newly established committee tasked with organizing the disbursement. The funds are earmarked to settle outstanding benefits for workers across three key tiers: the state civil service, local government service, and Local Education Authorities (LEAs).
Breaking Down the N21.7 Billion Allocation
The approved sum is strategically divided to ensure efficient and timely payment:
- State Civil Servants (N7.7 billion): This portion is designated as a one-off payment to be completed in December 2025. It covers retirement and death gratuities for former state employees.
- Local Government & LEA Staff (Over N14 billion): This larger tranche will be paid in installments over four months, from December 2025 through March 2026. This phased approach likely accounts for the larger number of beneficiaries and the need for careful verification at the grassroots level.
Context and Historical Backlog
This latest approval is not an isolated act but part of a broader, multi-phase strategy by the Radda administration. According to the statement, this N21.7 billion is intended to clear all outstanding benefits accrued from September 2023 to October 2025.
Critically, this builds upon a prior major intervention. As recalled in the announcement, Governor Radda had earlier approved over N23 billion to settle backlogs from January 2019 to August 2023. When combined, these two initiatives represent a total commitment of nearly N45 billion within a short timeframe, targeting a grievance that has spanned several years and administrations.
Why This Matters: The Human and Economic Impact
Beyond the headline figure, this policy has profound implications:
- Welfare and Social Justice: Gratuity and death benefit arrears cause immense hardship for retirees and families of deceased workers, often leaving them without a crucial financial safety net after decades of service. Clearing this backlog injects vital liquidity into vulnerable households, restoring dignity and providing economic relief.
- Stimulating the Local Economy: The injection of N21.7 billion directly into the hands of citizens, rather than into infrastructure projects, has a high multiplier effect. This capital will likely be spent immediately on necessities, goods, and services, providing a stimulus to local businesses across Katsina.
- Morale and Productivity in the Active Workforce: For current civil servants, seeing the government honor its obligations to their retired predecessors builds trust and morale. It reinforces the social contract, assuring them that their own future benefits are secure, which can positively impact productivity and loyalty.
- Governance and Fiscal Responsibility: Systematically addressing legacy debt is a hallmark of responsible fiscal management. It improves the state’s financial credibility and can free up future budgets from the burden of accumulating interest and ever-growing arrears.
The Road Ahead: Implementation and Challenges
The establishment of a dedicated committee is a positive step, but the real test lies in transparent and efficient execution. Key challenges include:
- Verification: Ensuring payments reach legitimate beneficiaries and deceased workers’ rightful next-of-kin, preventing fraud.
- Cash Flow Management: The state must ensure it has the liquidity to meet the one-off December payment and sustain the four-month installment plan for local government staff without disrupting other essential services.
- Sustainability: The ultimate goal must be to transition to a system where gratuities are paid promptly upon retirement, preventing new backlogs from forming. This may require reforms to the state’s pension contribution and management system.
In conclusion, Governor Radda’s N21.7 billion approval is a substantial and commendable financial intervention. Its success, however, will be measured not just by the funds released, but by their timely and accurate delivery to the intended beneficiaries, thereby closing a painful chapter for thousands of families and strengthening the foundation of Katsina’s public service.
(NAN) | www.nannews.ng
Edited by Funmilayo Adeyemi | Enhanced Analysis by Policy Desk
