Dr Alex Otti, the governor of Abia state, has said that the state has paid all pension arrears owing to around 12,500 retirees dating back to 2014.
Otti, who announced this at Government House Umuahia, promised that pensioners will never be owed their pensions again.
He pledged that Abia pensioners, like workers, will receive their 100% monthly pensions on or before the 28th of each month.
The Governor went on to say that paying accumulated pensions has a bigger beneficial influence on the state’s economy since it injects money into the system.
He said:
“I am glad to report that all pensioners , when I said all, I mean all of them have been paid as at last Thursday. All of the arrears have been taken away.
“The economy works with money. If you are in Abia and you will see that those pensioners who would have been begging 500 Naira, 1000 Naira, 5000 Naira to eat are able to feed themselves today and you recognize the fact that when they spend this money , they spend it in the State.
“So, if you understand the multiplier effect of money ,if you understand that supply can only happen when there is demand and effective demand is that demand that is backed up by cash, then you would have understood what we have done, we have returned power to those that own it and that is the people, and I am happy that our pensioners, close to 12,500 of them have been paid.”
cc: Vanguard Ng
