FG Spent N292b on Retirees in 2019 but still owes

Federal Government spent a total of N292.38bn on pension and gratuities of its retirees in 2019 financial year. This was disclosed in a monthly report released by the Central Bank of Nigeria.

According to the report, Federal Government spent N24.56bn monthly from January to June, and spent N24.17bn monthly from July to December, amounting to N147.36bn and N145.02bn respectively and totaling N292.38bn.

The above not withstanding, as at December 2019, FG was still owing retirees about 12 months accrued rights because as at that time, FG had only released accrued rights for retirees who retired up to December 2018. The estimated amount FG was owing retirees as at December 2019 was N62.82bn. As at the time of writing, i.e July 2020, FG is owing retirees 13 months accrued rights because FG has only released accrued rights up to May 2019.

The Retirees that FG is yet to release their accrued rights will be unable to commence withdrawals from their Retirement Savings Accounts (RSA).