Nigerian Governor Pays $27M in Overdue Worker Benefits

Thousands of retired workers in Katsina State, Nigeria, received long-awaited pension payments this week after Governor Dikko Umaru Radda released 21 billion naira (about $27 million) in overdue benefits. The money covers retirement and death benefits for 14,560 state and local government workers, some who had been waiting years for their earned entitlements.

When Radda took office in 2023, he inherited 24 billion naira in unpaid pension debt stretching back years. He made clearing this backlog a core promise of his administration, recognizing that retirees deserved better after decades of public service.

Since becoming governor, Radda has now released a total of 45.89 billion naira ($28 million) to settle these historical debts. His administration verified every claim, ensuring the right people received the right amounts without bureaucratic delays.

The governor didn't stop at clearing old debts. He signed a new pension law this year that aligns with international best practices, designed to prevent future payment delays. Two new agencies now oversee the modernized system, which has already collected over 19 billion naira in contributions and generated 668 million naira in investment returns.

For retirees like those gathering at Muhammadu Dikko Stadium to receive their payments, the impact goes beyond money. Many had struggled financially while waiting for benefits they earned through years of teaching, healthcare work, and public administration.

The Ripple Effect

The pension reforms are transforming how Katsina State treats its workforce. Current employees now see a clear path to dignified retirement, boosting morale across government offices. The state's labor union praised Radda for understanding that government strength depends on caring for those who serve.

Pensioners in Katsina also receive free healthcare and subsidized goods through a special consumer shop program. While some Nigerian states owe workers 90 months of back pay, Katsina now pays salaries and pensions on time every month.

The National President of the Nigeria Union of Pensioners called retirees in Katsina "blessed" under this administration. Local officials credit the governor's approach for stabilizing the civil service and encouraging younger workers to pursue public sector careers.

Governor Radda promised this final payment of old debts marks a new beginning where no worker retires with unfulfilled entitlements or uncertainty about their future.