Kwara State Government clears ₦3.3bn pension debt inherited from past administration, reaffirming commitment to transparency and fiscal discipline.
Kwara State Government has announced the clearance of ₦3.3 billion in outstanding pension debts inherited from the previous administration, marking a significant step in its drive to restore financial order and fairness to retired local government workers.
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Speaking at the 2025 third-quarter inter-ministerial press briefing in Ilorin, Commissioner for Finance, Dr Hauwa Nuhu, said the move reflects the government’s steady progress in offsetting accumulated gratuity arrears that have burdened the state for over a decade.
According to her, the administration met a backlog of more than ₦19 billion in unpaid local government gratuities dating back to 2009, out of which ₦12 billion has already been cleared. Payments have now reached gratuities due up to 2011, while ₦2.5 billion has been earmarked to settle 2012 to 2014 arrears.
Dr Nuhu added that gratuities for state civil servants have been paid up to 2016, though about ₦22 billion remains outstanding. To address this, the Kwara State Government has set aside ₦5.6 billion from its Internally Generated Revenue for the third quarter of 2025 to further reduce the backlog.
She revealed that the state recorded ₦15.7 billion in IGR for the same period, all paid directly into the Treasury Single Account in line with the government’s pledge of transparency and fiscal accountability.
“Our domestic debt currently stands at ₦57 billion, which includes the ₦22 billion gratuity component,” she explained, adding that the state also faces direct deductions from the Federation Account Allocation Committee.
Dr Nuhu attributed the lingering gratuity liabilities to the financial impact of two separate minimum wage increases implemented since the start of Governor AbdulRahman AbdulRazaq’s administration. However, she assured that the government remains determined to clear all arrears gradually.
“We inherited huge liabilities, but the government is doing its best to pay them off. Our commitment is firm and transparent,” she affirmed.
The commissioner stressed that the Kwara State Government remains accountable, with its budgets publicly accessible online for citizens to review. “There is no vagueness or secrecy,” she said.
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This decisive financial step not only reflects fiscal discipline but also strengthens public trust in the administration’s long-term economic reform strategy.
