Repayment of overdue debt low in most states – DMO warns


The Director General, Office of Debt Management, Patience Oniha revealed what threatens debt sustainability in some states in Nigeria.

According to Oniha, the difficulty of some state governments in paying arrears has threatened the level of debt sustainability in some states.

Oniha disclosed this in a presentation document titled “Pathways to Sustainable Debt Management: The SFTAS Approach”.

Oniha was represented by Isiaku Mohammed at the Workshop for Financial Journalists in Abuja organized by the State Fiscal Transparency, Accountability and Sustainability Office.

According to Punch, people like Kano, Benue, Osun, Delta, Ekiti, Ondo, Ogun, Rivers and Kwara in September last year were due pensioners.

Many of these affected pensioners died without having received their rights.

Officials from the Nigerian Union of Pensioners and Trade Union Leaders noted that some state governments, in addition to not paying contributory pensions, are beholden to pensioners under the defined benefit scheme.

State government officials, in their reaction, blamed the delay in paying pensioners on the country’s poor economy.

They assured pensioners that the rights would be paid as soon as their cash flow improved.

It was found that some state workers as of Monday had not received their salaries, while retirees had yet to receive their gratuities and other entitlements.

Trade union leaders from Ekiti, Benue, Ogun, Ondo, Rivers, Abia, Ondo, Edo and Kano states in their reaction to the inability of state governments to pay, said retirees are most affected by the failure of governors to fulfill their responsibilities.

There are indications that deductions by the Nigerian National Petroleum Company Limited from the Federation Accounts Allocation Committee have continued to deplete funds shared by the three levels of government at FAAC meetings.

NNPC had explained that its FAAC deductions were due to the huge subsidy expenses it was incurring.


Comments are closed.