The Abia State government has announced plans to pay off the N16.5 billion in salary arrears owed to workers in the state’s civil service in installments.
This decision was revealed by the Commissioner for Finance, Mr. Mike Akpara, during a press conference in Umuahia on Tuesday.
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Akpara emphasized the administration’s commitment to addressing the issue of unpaid salaries, stating, “A worker deserves his wages.”
He acknowledged that the current administration inherited a significant debt in salary arrears, particularly in state-owned educational institutions.
“We need to jumpstart the economy of the state, and for the velocity of money to improve in Abia, we need to stop going to bed by 7 pm,” Akpara said.
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He added that the government is determined to clear the arrears while also ensuring progress in other sectors of the economy.
While promising that the salary arrears will be paid, Akpara clarified that the payments will be made in tranches to avoid disrupting other economic activities.
He stated that the government aims to start settling the arrears for workers in state-owned educational institutions by July or August, with the goal of completing the payments by the end of the year.
The affected institutions include Abia State University (ABSU), College of Education Arochukwu, College of Health Sciences, Abia State Polytechnic, Aba, and Abia State University Teaching Hospital.
Akpara mentioned that the government has already paid salary arrears for April and May to workers in ABSU.
He criticized the past administration’s approach of providing subventions to institutions that still failed to pay salaries, resulting in prolonged arrears.
“In the past, there was something called generate and use, and we noticed that things were not being done properly,” he said.
He noted that the previous administration owed substantial amounts: 33 months to Abia Polytechnic, 22 months to College of Education Arochukwu, and 11 months to Abia State University.
The commissioner assured that the current administration has not taken any new loans since assuming office and has been managing its finances effectively.
He explained that the government is completing the loan application processes initiated by the previous administration with the Africa Development Bank and Islamic Development Bank.
Akpara also highlighted the administration’s commitment to transparency and accountability, stating that verification exercises will continue as needed to maintain order in the civil service.
“We will continue to apply ourselves to the good works that the state requires to ensure that the people get the dividend of democracy,” he concluded.
