States paying outgoing govs jumbo pensions owe N3tn debt (Report)

Despite increasing debts and unpaid wages for workers, no fewer than 18 departing state governors will retire into lives of luxury with significant pension benefits.

Punch reports that governors who will hand over to their successors on May 29, 2023, would be leaving behind at least N3.06tn debt for the incoming administrations.

According to data from the Debt Management Office, the debt figure of these states included N2.27tn domestic loans and $1.71bn foreign borrowing.

The foreign debt is about N787.51bn, using the exchange rate of the Central Bank of Nigeria, which was N460.53 per dollar as of May 14, 2023).

The debt figure was as of December 2022, which was the latest figure by the DMO.

The Outgoing Governors

The outgoing governors include Nyesom Wike (Rivers State), Ifeanyi Okowa (Delta State), Udom Emmanuel (Akwa Ibom State), Abdullahi Ganduje (Kano State), Badaru Abubakar (Jigawa State), Bello Matawalle (Zamfara State), Ben Ayade (Cross River State), Okezie Ikpeazu (Abia State),and David Umahi (Ebonyi State).

Other outgoing governors who will benefit from the largesse despite huge debts and unpaid workers’ arrears are Ifeanyi Ugwuanyi (Enugu State), Samuel Ortom (Benue State), Darius Ishaku (Taraba State), Abubakar Bello (Niger State), Abubakar Bagudu (Kebbi State), Nasir El-Rufai Kaduna State), Simon Lalong (Plateau State), Aminu Masari (Katsina State) and Aminu Tambuwal (Sokoto State).

The outgoing governors will be completing two terms of eight years in office on May 28, 2023, (except Zamfara’s Matawalle, who lost his re-election attempt), and will be entitled to generous monetary pensions, mansions to be built in locations of their choice, luxury vehicles and domestic as well as security aides, among others, based on laws passed by their respective state houses of assembly.

Top Borrowers

The PUNCH observed that the 18 states account for 42.51 per cent of the N5.34tn total domestic debt and 38.34 per cent of the $4.46bn total foreign debt.

Also, top domestic debtors include Delta (N304.25bn), Rivers (N225.51bn) and Akwa Ibom (N219.27bn), while top external debtors include Kaduna ($573.74m), Cross River ($209.53m) and Enugu ($120.86m)

Despite N225.51bn domestic debt and $87.13m foreign debt, Wike and his deputy, Dr Ipalibo Banigo, will enjoy generous benefits after leaving office as provided in the Rivers State Pensions for Governor and Deputy Governor Law, 2012.

Pension Law

According to the law, past governors must acquire three brand-new cars every four years, and they must be replaced. The payment of 100% of their basic income, 30% of their annual basic salary for furniture, free medical care, and entertainment is in addition to this. Their deputies also get some benefits.

The former governor Rotimi Amaechi’s administration passed the pension law for past governors and their deputies, which included additional features like two choice homes in any neighborhood of their choice in Abuja and Rivers State, as well as three cars that would be replaced every three years for the governor.

The law also stipulates that 20%, 10%, and 10%, respectively, of the current governor’s annual pay shall be set aside for utilities, building maintenance, and entertainment. Except in cases where he determines differently, Wike will be entitled to all of these.

Wike, however, is alleged to have owed staff schools at the state-owned university institution money for seven years.

A coalition of civil society organizations in the state has requested Wike, who will be passing over to his party’s candidate, Sim Fubara, to make up the unpaid wages of the workers before the beginning of the new administration.

Okowa is entitled to a furnished duplex in Delta State or any other state in the nation, medical care for himself and members of his immediate family, two vehicles, including a utility vehicle every two years, two armed policemen, one Department of State Security officer, 15 days of annual vacation in any location of his choice, and other benefits. He also owes N304.25 billion in domestic debt and $58.77 million in foreign debt. Similar benefits are also available to the deputy governor.

Former governor James Ibori, who headed the state from 1999 to 2007, signed into law the Delta State Governor and Deputy Governor Pension Rights and Other Benefits Law, 2005.

The Delta State Governor and Deputy Governor Pension Rights and Other Benefits (Amendment) Law, 2009 was the name of the subsequent amendment to the original law.

The law stipulates that ex-governors receive allowances and other perks valued at N50 million each year.

Among other benefits, these include a duplex in any Nigerian city of their choosing, a sport utility vehicle, a backup car that may be replaced every two years, an office with four assistants, two security staff, and monthly salaries. The four household helpers would each receive N100,000 each month.

Governor Emmanuel and his deputy are anticipated to receive the same benefits that the state’s Pension Act, 2014 offers. Akwa Ibom, which has N219.27 billion in domestic debt and $44.85 million in international debt, reportedly pays an average of N267.78 million annually on ex-governors and their deputies.

Additionally, they are entitled to a four-year car replacement for official and utility vehicles.

PUNCH extensive report can be accessed here