In 2023, Nigerian states face a severe pension debt crisis, with pension and gratuity backlogs impacting the welfare of retirees. According to data from BudgIT, the most significant debts are in Benue (₦74.3bn), Oyo (₦40.05bn), and Enugu (₦34.46bn). This substantial financial burden has led to widespread hardships among pensioners, many of whom have struggled without entitlements that should support them post-retirement.
STATES OWING HIGHEST PENSION & GRATUITY – 2023
1 🟠 Benue — ₦74.3bn
2 🟣 Oyo — ₦40.05bn
3 🟢 Enugu — ₦34.46bn
4 ⚫ Bauchi — ₦31.21bn
5 🟤 Cross River — ₦29.86bn
6 🟠 Niger — ₦28.62bn
7 🟢 Abia — ₦28.17bn
8 ⚫ Adamawa — ₦27.2bn
9 🟤 Edo — ₦24.95bn
10 🟤 Bayelsa — ₦24.08bn
11 🟤 Delta — ₦21.66bn
12 🟠 Plateau — ₦20.28bn
13 🟠 Kwara — ₦19.02bn
14 ⚫ Taraba — ₦18.67bn
15 🟢 Imo — ₦13.78bn
16 🟣 Ekiti — ₦12.41bn
17 ⚫ Gombe — ₦10.47bn
18 🔴 Jigawa — ₦10.44bn
19 🔴 Zamfara — ₦8.42bn
20 🔴 Sokoto — ₦8.38bn
⚫NE 🔴NW 🟤SS 🟠NC 🟢SE 🟣SW
(BudgIT)
In states like Kwara, where thousands of pensioners reportedly died waiting for arrears, pension delays have created desperate situations. Although Governor Abdulrahman Abdulrazaq’s administration began paying pensions regularly, substantial arrears remain unpaid due to legacy debts from previous administrations. Similarly, in Enugu, retirees from various parastatals report years-long backlogs, with gratuities not paid since 2005. Meanwhile, Governor Bassey Otu of Cross River has pledged to address the state’s ₦24 billion pension backlog before year-end, emphasizing the injustice faced by workers who devoted decades to public service.
The consequences of these arrears are significant. Retirees, already vulnerable due to age, are left in poverty and without access to healthcare. This crisis extends beyond pensions; it signals the broader economic difficulties that restrict states’ ability to meet social obligations. Structural changes and financial planning reforms are urgently needed, as is support for a federal intervention to alleviate states’ pension burdens.
In advocacy for Nigerian workers, it’s essential to emphasize that consistent pension payments are a fundamental right. Nigerian pensioners, having spent decades in service, deserve timely compensation, and state governments must prioritize effective debt restructuring to protect future pensioners from similar hardships.
