In Response to Bobagunwa Adeleke Adedipe
Dear All:
As SA/DG OTSD of EKSG from October 2018 to October 2022, I spent a considerable amount of time analyzing and making recommendations on the state’s Gratuity and Pension situations, which had become dire over the years. My investigation showed that by that October 2022, there were roughly 19,000 pensioners – almost equally divided between state and LG pensioners, and about 40,500 total salaried government workers – a rather high proportion of pensioners to salaried workers. More troubling was that about 90% of these salaried workers – like 100% of the pensioners – were on Defined Benefit Scheme (DBS) rather than Contributory Pension Scheme (CPS), meaning that Government was still paying pensioners as if they were on salary rather than on a pension fund separate from government coffers, and would continue to do so when these salaried workers retired if not moved from DBS to CPS
This led to a significant amount of debt being owed to pensioners, starting with the Fayose administration, and accelerated somewhat under the Fayemi administration as it struggled to get a handle on the issue it inherited. Both Administrations tried to offset Gratuity debts:
Gratuity Payments
FAYOSE 2
State – N431,589,786.11
LG – *N370,388,895.14
Total Fayose 2 – N801,878,181.25
FAYEMI 2
State -N2,061,868,688.73
LG -N765,197,825.94
Total Fayemi 2 – 2,727,066,514.67
So Fayemi paid a total of more than three times of Fayose, and both paid roughly N3.5 billion over 8 years.
Now by the time Fayemi left in October 2022 and Oyebanji BAO came on, a lot of gratuity money was still being owed:
To STATE Pensioners: N19, 899,626,112.97
To LG Pensioners: N20,369,773,693.51
Total: N40,269,399,806.48
Sources: state and LG PTAD
It is this Gratuity debt – and additional ones that must have been added, since more pensioners must have been added since October 2022 when he came on – that BAO has been trying to defray, with the following payments so far between October 2022 and July 2025 (from my estimates)
State – N7.7 bn
LG- N3 37911
Total – N11.07911bn
So BAO has paid in three years three times what Fayose and Fayemi paid in 8 years , and has cut the pension bill that he met by 25% .
Now, one is fully aware that in this highly volatile political season, the problem with gratuity payments by this BAO1 Government are four-fold:
- The beneficiaries are quite appreciative and grateful, but ultimately many of them – and political detractors – feel that it is their entitlement anyway, so what is the big deal? So their gratitude is muted, and they might not come out full-force defending their benefactor to the same extent that he might want.
- Some might even complain that the value of their money has been seriously eroded by economic circumstances over the years. One million naira in 2025 is no where near the same value as in 2012 or 2015.
- The number of people who HAVE NOT been paid – and are still owed now exceed those who have been paid. Those unlucky ones are still aggrieved.
4.There has increasingly been greater FAAC availability from Fayose2 to Fayemi2 to significantly in BAO1vduring this Tinubu post-subsidy-removal administration. However, rather than look at raw total naira values, some non-dimensionalization must be done, which should start with noting down the average gratuity payment of each Admnistration from the figures that I quoted, viz
Fayose2 – N0 2bn
Fayemi2 – N0.7bn
BAO1 – N3.3bn
The denominator of the dimensionless quantity could be one or all of three naira figures: (i) their average FAAC allocations, (ii) their average budgets (since these show their priorities), or (iii) the average amounts of gratuity owed during each Administration (since these differ and increased progressively).
That exercise is the subject of further investigation by others. I have done my bit.
These are understandable concerns. Nevertheless, the facts of the BAO Administration’s great effort in this arena have been set forth above. Those are the facts, as different from fantasy. If you have alternative facts, let us have them.
I thank you. There you have it.
Bolaji Aluko
Ado-Ekiti
August 20, 2025
