FG allocates ₦336bn to retirees in nine months

By allcitynews.ng

In apparent bid to cushion the effects of the harsh economic downturn across the country, Federal Government announced that it has allocated ₦336.61 billion to pensions and gratuities in the first nine months of 2024, a slight decline from previous allocations.

According to the Central Bank of Nigeria (CBN), debt servicing during the same period soared to ₦8.94 trillion, consuming 47% of total government expenditure and 147% of retained revenue.

It could be seen that disproportionate focus on debt servicing raises concerns about the government’s capacity to meet social obligations, including payments to retirees.

Recurrent expenditure surged by 45.6% to ₦15.11 trillion, while personnel costs rose by 20% to ₦3.59 trillion. However, pensions and gratuities saw minimal prioritization, signaling the impact of fiscal pressures on welfare spending.

Financial experts have warned that without urgent reforms, the rising debt servicing costs—projected to hit ₦16 trillion by 2025—could further erode funding for critical social programs, leaving retirees and other vulnerable groups at risk.

The government must strike a balance between managing debt obligations and safeguarding the welfare of its citizens, particularly those dependent on pensions and gratuities.

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