Ekiti State Government has initiated the proposal for an alternative financial instrument to pay the N16.2 billion pension and gratuity arrears owed by the state government.
The Executive Council considered and approved by Governor Kayode Fayemi as presented by the Special Adviser, Investments, Trade and Innovations, Mr Akin Oyebode proposing alternative financial instrument to help speed up payment of the debt at its virtual meeting held on Thursday.
In a statement by the Commissioner for Information, Muyiwa Olumilua, on Friday, he said the state is presently owing a sum of N13.5b unpaid gratuities and N2.7b outstanding pensions.
The statement said: “Council noted that in spite of the government increasing gratuity payments by 900%, from N10 million paid by the previous administration to N100 million monthly, the possibility of some of the retirees receiving their gratuities during their lifetime seemed very remote.
“Hence the need to explore other viable options to reduce the waiting time for the retirees and pay up as much as 50% of the outstanding on or before the end of this administration in 2022.”
The Council’s approval of the voluntary alternative payment instrument is premised on Governor Kayode Fayemi’s conviction that every worker is worthy of their wages during their lifetime.
“Details of the instrument will be made public in due course”, he said.