The Abia State Government has revealed a strategic plan to clear N16.5 billion in salary arrears owed to civil service workers through installments, aiming to ensure financial stability and sustained economic growth.
In a decisive move to address outstanding financial obligations, the Abia State Government has announced a comprehensive plan to pay off N16.5 billion in salary arrears owed to civil service workers in installments. This significant revelation was made by the Commissioner for Finance, Mr. Mike Akpara, during a press conference in Umuahia on Tuesday.
Akpara underscored the administration’s commitment to altering the narrative of owing salaries, emphasizing that “a worker deserves his wages.” He pointed out that the current administration inherited substantial debts from previous governments, specifically a N16.5 billion debt owed to employees in state-owned educational institutions.
“We need to jump-start 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 remarked. He highlighted the government’s determination to clear these arrears while maintaining progress in other economic sectors.
The commissioner outlined that the repayment of these arrears would begin by “July or August” with the goal of completing payments by the end of the year. He mentioned that the debts include salaries owed to employees of Abia State University (ABSU), College of Education Arochukwu, College of Health Sciences, Abia State Polytechnic Aba, and Abia State University Teaching Hospital.
Akpara emphasized that the government has already made headway by paying the salary arrears for April and May to workers at ABSU. He explained that previous administrations had accrued significant debts, including 33 months of unpaid salaries at Abia Polytechnic, 22 months at the College of Education Arochukwu, and 11 months at Abia State University. Other institutions, including the Hospital Management Board, were also heavily owed.
In response to public criticism, Akpara defended Governor Alex Otti, urging residents to support the government’s policies and programs. He stressed that the current administration has not applied for any new loan facilities since taking office and has been managing its finances prudently.
He acknowledged that loan requests initiated by the previous administration with the Africa Development Bank and Islamic Development Bank are still being processed, emphasizing that the current government is completing these processes because “government is a continuum.”
Akpara assured that the administration is committed to conducting verification exercises to maintain order and efficiency within 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.
This strategic approach by the Abia State Government aims to ensure financial stability while gradually addressing substantial salary arrears, thereby fostering continuous economic growth and stability.