The Bauchi State Government has begun paying N10 billion in outstanding pensions and gratuities owed to 1,700 retirees.

Governor Bala Mohammed said this during the inauguration of the disbursement exercise on Wednesday in Bauchi.

Mr Mohammed said that the fund would cover payment of gratuities and pension obligations to state and local government workers who retired from service from 2012 to 2016.

Represented by his deputy, Auwal Jatau, the governor said that N10 billion was released for payment under the first phase of the exercise, while payment would be made to the remaining retirees in subsequent phases.

Mr Mohammed described the pensions backlog as a major fiscal challenge confronting successive administrations in the state.

He said that subsequent batches would be processed progressively based on the outstanding obligations, validation of records and availability of funds.

The governor assured payment of outstanding gratuities and pensions to retirees in the state.

Mr Mohammed said the gesture was part of efforts to restore dignity and economic security to retired workers, who contributed to the state’s development.

“We are starting here, but we are not stopping here,” he said.

 Mr Mohammed directed the State Contributory Pension Commission, the office of the State Head of Service and clearing banks, to ensure transparency, speed and fairness in the exercise.

Speaker of the Bauchi State House of Assembly, Abubakar Suleiman, commended the gesture and pledged support of the legislature to address the pensions backlog in the state. 

(NAN)