Thirty-two states in Nigeria owed a total of N933.32 billion to entrepreneurs and retirees in 2023, according to findings by The PUNCH.

The findings are based on an analysis of data from the State of the States 2024 report by BudgIT, a Nigerian civic organization that focuses on promoting transparency, accountability and effective governance.

The 32 states with responsibilities to entrepreneurs and retirees are Abia, Adamawa, Akwa Ibom, Anambra, Bauchi, Bayelsa, Benue, Borno, Cross River, Delta, Ebonyi, Edo, Ekiti, Enugu, Gombe, Imo, Jigawa, Kaduna , Kano, Katsina, Kebbi, Kogi, Kwara, Lagos, Niger, Osun, Oyo, Plateau, Sokoto, Taraba, Yobe and Zamfara.

The report revealed that these debts consist of N408.69 billion in contractor arrears and N524.63 billion in unpaid pensions and gratuities.

Notably, some states like Bayelsa, Edo and Kebbi reported no contractor liabilities, while others like Ogun and Ondo reported no pension arrears.

The PUNCH observed that Delta State topped the list of contractors’ obligations, with debts amounting to N76.26 billion.

This was well above Imo’s N43.47 billion and Cross River’s N39.12 billion, which ranked second and third respectively.

Kano and Akwa Ibom followed closely with N37.04 billion and N31.07 billion in contractor arrears respectively.

On the other hand, Jigawa and Yobe had the least obligations to contractors, with N98.19 million and N2.79 million owed respectively.

When it comes to pensions and gratuities, Benue State emerged as the state with the highest arrears, owing a staggering N74.3 billion to retirees.

Oyo followed with N40.05 billion, while Enugu, Bauchi and Cross River states owed N34.46 billion, N31.21 billion and N29.86 billion respectively.

At the lower end of the spectrum, Lagos State recorded only N2.69 million in pension arrears, the lowest figure in the country.

Other states with relatively modest pension liabilities include Kaduna with N1.69 billion and Borno with N2.95 billion.

The report further notes that the overall recurrent expenditure of states in Nigeria accounted for 47.36 percent of their total expenditure in 2023.

This expenditure increased by 21.17%, from N3.8 billion in 2022 to N4.64 billion in 2023.

Debt servicing also constituted a significant burden, with N1.25 trillion, representing 12.8 percent of the cumulative expenditure of the affected states, spent on loan servicing.

BudgIT also noted that states spent N287.56 billion in 2023 on debts such as contractor arrears, pension and gratuity arrears and other unpaid debts.

However, these expenses have not been officially accounted for in state tax records, suggesting that the financial strain could be even worse than reported.

BudgIT noted: “States’ overall recurrent expenditure, which accounted for 47.36 percent of overall expenditure, increased by 21.17 percent from N3.8 billion in 2022 to N4.64 billion. in 2023.

“Additionally, N1.25 trillion, representing 12.8 percent of the states’ cumulative expenditure, was used to service the debt. Interestingly, N287.56 billion, not collected by states as part of their expenditure for the 2023 financial year, was used to offset contractor arrears, pension and gratuity arrears, as well as other unpaid debts.

The report also reveals that states are saddled with additional debts totaling N1.19 trillion.

This includes N408.69 billion owed to contractors, N521.36 billion in pension and gratuity arrears, N79.64 billion in salary and personnel receivables, N4.36 billion in debts and N182.79 billion in other debts.

The BudgIT report states: “In addition to the existing debt stock, states have outgoing debts totaling N1.19 billion: N408.69 billion is owed in contractor arrears, N521.36 billion is owed in pension and gratuity arrears, N79.64 billion is owed in pension and gratuity arrears. salaries and other staff receivables, N4.36 billion is owed in respect of court debts and other pending litigation, and other debts and liabilities amount to N182.79 billion.

Last week, The PUNCH reported that pension arrears owed by the federal and state governments increased to over N193 billion.

Although several states such as Zamfara, Benue, Kaduna, Kano, Nasarawa and others have caught up with their arrears, it was gathered that the Federal Government is yet to settle over N88 billion in contributory pensions, while many states were burdened with pension arrears estimated at over N105 billion.

Deputy General Secretary of the National Union of Pensioners, Bunmi Ogunkolade, earlier told The PUNCH that the Federal Government was yet to settle the N88 billion accrued entitlements under the contributory pension scheme from March 2023 to this day.

CPS was introduced by the Pension Reform Act 2004 and, under this Act, employees and employers jointly contribute to a retirement savings account for each worker, making pensions more sustainable.

The law sets the minimum amount of combined contributions at 15 percent of an employee’s monthly salary.

The Pension Reform Act of 2014, which amended the 2004 law, further improved the CPS by increasing contributions to a combined minimum of 18 percent and strengthening regulations to ensure compliance with private and private sector employers. audience.

Speaking to The PUNCH on Thursday, Bunmi Ogunkolade said state governments were dragging their feet on issues related to the payment of pensioners’ compensation and implementation of the new pension scheme.

Ogunkolade, who stressed that state governments did not owe pensioners monthly pensions, called for the need to pay pensioners their entitlements.

He said: “No state has a monthly pension. We’re talking about the monthly allowances they pay. The N17,000, N10,000 and others but what they owe is the tip. Some states have been liable since 2012. They have refused to release the funds. Even with the pension issue, most states continue to use the old system. Someone who probably earned N10,000 in 2010 will still receive the same in 2024 because states have failed to do the needful.

“You can say that you pay my monthly pension but it is nothing if you do not pay me my gratuity and that is what we are saying. Additionally, some states have started the implementation of the new pension scheme approved by the National Wages, Wages and Income Commission. There are states like Lagos, Ondo and others. This is therefore the gratuity owed to the States and not monthly allocations. We spoke with them. We are communicating with these States on the need to release the bonuses.”

The Nigerian Association of Pensioners, Anambra State Council, has earlier urged Governor Chukwuma Soludo to address outdated pension rates.

The call follows the discovery of a case in which a retired senior government official, identified as Mrs. Fanny Ngozi Uchefuna, allegedly received N330 as monthly pension.

Uchefuna, with ID card number AN 866, retired on October 21, 1994 from the National Education Commission, with Njikoka Local Government as the point of payment.

In response to this situation, the union wrote to Governor Soludo, requesting a review and harmonization of pension rates in the state.

The letter referred to a circular from the National Wages, Income and Wages Commission, urging the governor to implement the new rates.

Also, retired civil service directors in Anambra State have called for a review and harmonization of pensions, noting that retirees have not seen any increase since 2003.

In 2023, Anambra State owed N24.26 billion to contractors and N4.38 billion in arrears of pensions and gratuities, bringing its total liabilities to N28.64 billion.

Based on a statement issued on Thursday, the Special Adviser to the Ekiti State Governor on Media, Yinka Oyebode, said the governor had approved the payment of two months of pension arrears to local government retirees .

He noted that the Ekiti State Governor, Mr. Biodun Oyebanji, has approved the release of one billion naira as gratuity for retirees in the state.

It will be recalled that Oyebanji last month distributed N3.5 billion in gratuity checks to pensioners in the state as part of efforts to clear the backlog of unpaid gratuities.

By 2023, Ekiti State owed N2.32 billion to contractors and N12.41 billion in arrears of pensions and gratuities, bringing its total liabilities to N14.73 billion.