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The Federal government will disburse over N1billion to pensioners this week. This is part of the N75billion arrears owed Nigerian.....
The Federal government will disburse over N1billion to pensioners this week. This is part of the N75billion arrears owed Nigerian pensioners over the years and is coming on the heels of a tortuous verification exercise recently carried out nationwide.
Finance Minister Mrs. Nnenadi Usman who flagged off the exercise Monday disclosed that over 322 pensioners who had been verified received a total payment of N300million on the first day of payment, and that before the end of this week, over N1billion would have been disbursed.
She said it was only last week that the president asked her; "when are you going to pay the arrears of the pensioners." It was that single statement that made this day possible, she said adding: "The sad picture of our senior citizens lining up outside and around the various verification outlets, often without any hope of succor have become ingrained in the minds of most Nigerians''.
The exercise, according to Usman, was necessary as it was meant to stem fraud and corruption. She said government has verified a total of 260,000 pensioners nationwide, which represents about 95 per cent of the total number. The details of their arrears, she said have been reconciled and the verified amount due will be forwarded to the pensioner's accounts.
The minister said the event is representative of what is happening nationwide and will continue until every pensioner is paid. "All the 260, 000 pensioners will be paid and those yet to be verified will be verified and paid. Government will work out the modalities for the verification of pensioners in other agencies where such exercises have not been effected. Adequate budgetary provision has been made to ensure monthly settlement of pensions," she said.
To solve the pension arrears, the Federal Government had to go into partnership with about 10 banks and other discount houses through the sale of government bonds. The government will then repay these banks through the offer and purchase of the bonds. The government has altogether earmarked the sum of N75billion through this mechanism for the settlement of the pension arrears owed senior citizens over the years.
Director General Budget Office, Mr. Bode Agusto who was at the flag-off ceremony said those represented at the occasion were mainly university and military pensioners. The military pensioners were owed arrears of six to seven months while others amounted to a total of 26 months and above.