Outgoing Govs set to collect mega pensions from states owing workers’ salaries
By Jeph Ajobaju, Chief Copy Editor
At least 18 outgoing Governors have positioned themselves for generous pensions despite unpaid workers’ salaries and N3.06 trillion owed by their states.
Among the star cast are Rivers, where lecturers in state tertiary institutions are owed humongous salary arrears; Abia, which owes workers 30 months’ salaries; and Zamfara, the poorest state in Nigeria by all metrics.
Wike has boasted on national television he drinks 40-year-old Whiskey at Governor’s Lodge, Port Harcourt; which led to his predecessor, Rotimi Amaechi, accusing him of spending N50 million public funds monthly on alcohol consumption.
Zamfara Governor Bello Matawalle was last week accused by the Economic and Financial Crimes Commission (EFCC) of diverting more than N70 billion from the state treasury.
In a counter allegation, Matawalle accused EFCC Chairman Abdulrasheed Bawa of demanding $2 million from him to hush his investigation, and threatened to expose the chief sleaze buster with “evidence” of his bribe demand.
Debt Management Office (DMO) data shows state debts include N2.27 trillion domestic loans and $1.71 billion ones by December 2022.
Their foreign debt is about N787.51 billion (at the official exchange rate of N460.53 per the dollar as of 14 May 2023).
Outgoing Governors include
- Nyesom Wike (Rivers)
- Ifeanyi Okowa (Delta)
- Udom Emmanuel (Akwa Ibom)
- Abdullahi Ganduje (Kano)
- Badaru Abubakar (Jigawa)
- Bello Matawalle (Zamfara)
- Ben Ayade (Cross River)
- Okezie Ikpeazu (Abia)
- Dave Umahi (Ebonyi)
Those lined up for jumbo pensions are
- Ifeanyi Ugwuanyi (Enugu)
- Samuel Ortom (Benue)
- Darius Ishaku (Taraba)
- Abubakar Bello (Niger)
- Abubakar Bagudu (Kebbi)
- Nasir El-Rufai (Kaduna)
- Simon Lalong (Plateau)
- Aminu Masari (Katsina)
- Aminu Tambuwal (Sokoto)
The outgoing Governors will complete two terms of eight years in office on May 29 (except Matawalle who lost re-election), and will be entitled to pensions, mansions to be built in locations of their choice, luxury vehicles and domestic as well as security aides, among others, based on laws passed in their state Assemblies.
The 18 states account for 42.51 per cent of N5.34 trillion total domestic debt and 38.34 per cent of the $4.46bn total foreign debt, according to reporting by The PUNCH.
Top domestic debtor states include Delta (N304.25 billion), Rivers (N225.51 billion), and Akwa Ibom (N219.27 billion). Top external debtor states include Kaduna ($573.74 million), Cross River ($209.53 million), and Enugu ($120.86 million).
Rivers
Despite N225.51 billion domestic debt and $87.13 million foreign debt in Rivers, Wike and his Deputy, Ipalibo Banigo, will get generous retirement benefits as provided in the Rivers State Pensions for Governor and Deputy Governor Law, 2012.
The law provides that three new vehicles be bought for former Governors, and the vehicles are to be changed every four years.
This is in addition to the payment of 100 per cent of their basic salaries, 300 per cent of their annual basic salary for furniture, free medical services and provision for entertainment. Their Deputies also enjoy certain perks.
The pension law, enacted by the administration of Amaechi, also makes provisions for former Governors to have
- Two houses in any area of their choice in Rivers and Abuja
- Three cars replaceable every three years
- 20 per cent of their annual salary earmarked for utility bills, 10 per cent (accommodation maintenance), and 10 per cent (entertainment)
Wike, who will be entitled to all these, is accused of owing teachers of staff schools of state-owned tertiary institutions for seven years and has been urged to pay them before the inauguration of the incoming administration.
He will hand over to All Progressives Congress (APC) member, Sim Fubara.
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Delta
The PUNCH reports Delta has N304.25 billion domestic debt and $58.77 million foreign debt. There, Okowa is entitled to
- A furnished duplex in the state or any other state in the country
- Medical treatment for him and members of his immediate family
- Two vehicles, including a utility vehicle, every two years
- Two armed policemen and one Department of State Security (DSS) officer
- 15 days’ annual vacation in any place of his choice and other benefits
- His Deputy is also entitled to similar perks
The Delta State Governor and Deputy Governor Pension Rights and Other Benefits Bill was in 2005 signed into law by former Governor James Ibori, who ruled the state between 1999 and 2007.
The law, which was amended in 2009, provides for former Governors to be paid allowances and other benefits pegged at N50 million yearly.
The perks include
- One duplex in any city of their choice in Nigeria
- One sport utility vehicle (SUV) replaceable every two years
- A backup car replaceable every two years
- An office with four aides, two security personnel and monthly salaries, among others.
- Each of the four domestic workers will earn N100,000 monthly
Akwa Ibom
Akwa Ibom, which has N219.27 billion domestic debt and $44.85 million foreign debt, reportedly spends an average N267.78 million per year on former Governors and their Deputies.
Emmanuel and his Deputy are expected to enjoy the same in line with the states’ Pension Act, 2014.
They are also entitled to the replacement of official and utility vehicles every four years.
Kano
Kano has N122.36 billion and $100.67 million foreign debt.
However, Ganduje and his Deputy are entitled to 100 per cent of their basic salaries, a six-bedroom house and free medical treatment for themselves and members of their families upon handover on May 29.
The law guiding pension rights for former Governors and Deputy Governors also says they will get well-equipped offices.
Jigawa
The state has N43.95 billion domestic debt and $26.99 million foreign debt.
The Jigawa State ‘Former Public Officers Pension and other Benefits Law No. 15 of 2015’ stipulates that a Governor who completes his term without impeachment is entitled to
- A monthly pension equivalent to his current salary
- Two brand new vehicles to be provided by the government and to be replaced after every four years
- A six-bedroom fully furnished house
- Two personal assistants not below Grade Level 10
- Two drivers selected by the Governor and to be paid by the state
- A fully furnished office in any location of his choice
- Fully paid medical treatment in Nigeria and abroad
The Deputy Governor is to get a monthly pension equivalent to his salary, one assistant not below Grade Level 8, one brand new vehicle, a four-bedroom flat, and an office in a location of his choice.
Zamfara
Matawalle lost re-election in March and will complete his four-year tenure on May 29, leaving N112.2 billion domestic debt and $28.86 million foreign debt.
The Zamfara “Grant of Pension to Governor or Deputy Governor (Amendment Law), 2006” provides for pension and other benefits for former Governors such as:
- A pension for life equivalent to the salary of the incumbent
- Two personal staff members
- Two vehicles replaceable every four years
- Two drivers
- Free medical for former Governors, their Deputies, and their immediate family members in Nigeria or abroad
Some N7 million was to be paid monthly to former Governors and N2 million to former Deputy Governors, but former Governor Abdul-aziz Yari reviewed it to N10 million for Governors and N5 million for Deputy Governors.
However, the law was repealed by the state House of Assembly on 26 November 2019.
Investigation shows Matawalle owes workers two months’ salaries and has been urged by the state Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) to pay all outstanding salaries before handing over to Dauda Lawal on May 29.
Sokoto
Despite Sokoto’s burden of N90.6 billion domestic debt and $36.56 million foreign debt, Governor Aminu Tambuwal will enjoy the provisions of the State Pension Law, which
- Approves N200 million payment every four years to former Governors and N180 million to Deputies as monetised entitlements, including domestic aides, residences, and vehicles that can be renewed after every four years.
Section 2 (2) of the Sokoto State Grant of Pension (Governor and Deputy Governor) Law, 2013 says: “The total annual pension to be paid to the governor and deputy governor shall be at a rate equivalent to the annual total salary of the incumbent governor or deputy governor of the state, respectively.”
Abia
Ikpeazu, who is leaving behind N103.71 billion domestic debt and $94.28 million foreign debt, is entitled to
- 100 per cent of his salary and official vehicles worth N20 million, to be replaced every four years
- A police orderly
- Two operatives of the Department of State Service (DSS)
- Two policemen for the security of his house
- Allowances for cooks, stewards, driver, and gardener
His Deputy will enjoy similar benefits.
The state Pension Law also provides for medical treatment for former Governors and Deputies as well as “the sum of money as may from time to time be granted by the state government by way of pensions, allowances and privileges in accordance with this law.”
Governor-elect Alex Otti, who will take over from Ikpeazu on May 29, will face the challenge of paying over 30 months’ salary arrears to workers.
The NLC recently declared an indefinite strike in Abia over the huge indebtedness to the workers.
Niger
Bello is leaving behind at least N95.59 billion domestic debt and $69.23 million in foreign debt.
He will transition from Government House, Minna to the Senate (representing Niger North Senatorial District) and yet will benefit from a pension scheme introduced by former Governor Abdulkadir Kure’s administration.
The scheme mandates
The payment of pension to former Governors and Deputies
- Two drivers on GL 07
- Two personal assistants on Grade Level 08
- Security aides
- An SUV renewable every year
- A mansion in a location of their choice
Katsina
Masari will complete his second term on May 29, passing on at least N62.37 billion domestic debt and $53.92 million foreign debt.
The Katsina State Pension Law, 2011 (as amended) provides pensions for all former Governors, including those who served in the old Kaduna State from which Katsina was carved out.
Masari, like his predecessors, will enjoy free houses and medical services under the law as well as N2.22 million pension benefits monthly, vehicles, and personal aides.
Ebonyi
The state has N76.5 billion domestic debt and $58.57 million foreign debt.
The Ebonyi State Political Office Holders Amendment Law, 2011 ensures the payment of pension to Umahi, who has won election the Senate.
The law also makes provisions for vehicles and personal aides, among others, for the Governor and his Deputy.
Other indebted states
Many other states – duvh Cross River, Benue, Enugu, Taraba, Kebbi, Kaduna, and Plateau – which are on the list of debtors, have similar provisions for former Governors and Deputies while owing workers.
The Nigeria Medical Association (NMA) has accused Ikpeazu and Governors Hope Uzodimma (Imo) and Samuel Ortom (Benue) of giving health workers in their states “sleepless nights” over unpaid salaries.
Incoming Governor Hyacinth Alia will not only take over the reins of power from Ortom, he will also be confronted by aggrieved civil servants.
In Plateau, incoming Governor Caleb Muftwang will be forced to settle outstanding salaries owed by his predecessor, Simon Lalong.
Almost all categories of workers in Taraba are being owed salaries.
State NLC, during the 2023 Labour Day celebration, urged Ishaku to settle the six months’ salaries of council employees and five months for primary school teachers before handing over to the incoming administration.
Incoming Cross River Governor Bassey Out will face angry environmental workers who have protested the failure of the government to pay their four months’ salaries.
TUC intervention
TUC National Vice-President Tommy Etim has urged all affected Governors to clear “their tables” and pay all outstanding salaries before handing over to their successors.
Etim, who is also Association of Senior Civil Servants (ASCS) National President, said: “As they are leaving, they should clear their tables and pay all outstanding salaries. These Governors need to know that salary is a right and not a privilege. Failure to pay will also be a huge burden on the incoming administrations.
“Also, the Governors have all set up transition committees; they must include what they owe in their handover notes. Let everybody know.
“However, in order to avert industrial crises, they must settle the outstanding salaries and other entitlements. They should do this to redeem their images. They must clear the salaries.”
Rewarding failure
Victor Agi, a fiscal transparency analyst, criticised the huge amount paid to former political officeholders as retirement benefits.
“It is therefore against natural justice that people who could not substantially make a meaningful impact in the lives of ordinary people during their term in office would part with so much public fund as severance and pension for the rest of their lives,” he said.
“In spite of the negative growth indicators, inflation and huge debt burden starring us all in the face, to what end, therefore, are public servants parting away with so much from our coffers?
“While a labourer is worthy of his/her wages, one wonders if many of the public servants who are expecting these severance packages would ‘handsomely reward’ an employee who had run their businesses the way they have spearheaded the affairs of the country in the last eight years.
“Reward in the form of a severance package in the public service is certainly expected, but rewarding a public servant in whatever capacity who has incurred more debt and has not added substantially to the living standard of the people is rather problematic and would mean that the country has systemised rewarding failure.
“This is an anomaly that we must continue to interrogate.”
A senior economist with SPM Professionals, Paul Alaje, described the benefits as a burden on states.
Said he: “Pension is a burden for any payer, the government and the state. It only shows that people think they don’t have a life outside political offices and that is why such an amount will be budgeted for somebody who is no longer in office and who is not contributing directly to the growth and development of the state .…
“It is unrealistic for this practice to continue. More than 60 to 70 per cent of our states are bleeding in terms of financial boost and this continues every four years.
“What we are doing is, we are deliberately plunging our country into a coma. A time will come, and we are close to it, when all we are generating as internally generated revenue will just be enough salaries and pensions, and only take care of political officeholders without any infrastructural development.
“We must condemn in strong terms the spending of the little resources we have to better the lives of politicians at the detriment of states.”