
Ogun State: ₦3.5B Ogun Severance Payment to Ex-LG Officials
Summary
- Ogun State disbursed ₦3.503 billion in outstanding severance allowances to former political office-holders.
- The payment covered 1,042 ex-officials from 20 local government councils and Local Council Development Areas who served between 2016 and 2024.
- A comprehensive verification and reconciliation process, involving multiple state agencies, preceded the disbursement.
- This initiative reflects the government's policy to settle all legitimate inherited financial liabilities.
What Happened
By clearing these long-standing severance payments, the state government establishes a crucial precedent for the resolution of similar financial obligations within the public service.
The Ogun State Government recently disbursed a substantial sum of ₦3.503 billion to former political office-holders, settling outstanding severance allowances. This significant Ogun severance payment to ex-LG officials covers individuals who served across the state’s 20 local government councils and various Local Council Development Areas. The beneficiaries held positions such as chairmen, vice-chairmen, secretaries to local governments, supervisors, special advisers, and councillors, with their service periods spanning from 2016 to 2024.
The payment was officially announced on a Tuesday, coinciding with a cheque presentation ceremony held for some of the recipients at the Oba’s Complex in Oke-Mosan, Abeokuta. According to a statement issued by Kayode Akinmade, the Special Adviser on Media and Strategy to the governor, the settlement addressed the entitlements of 526 former political office-holders from the 2016–2019 tenure, alongside 516 individuals who served during the 2020–2024 tenure. This comprehensive Ogun State local government severance initiative marks a notable effort to address long-standing financial obligations.
Context and Rationale
This substantial disbursement aligns with the current administration's stated policy of diligently settling legitimate inherited liabilities. Kayode Akinmade emphasized that the government views itself as responsible and people-centred, taking a "bold step" to clear these debts in full, consistent with the governor's commitment to ensuring no legitimate liability remains unpaid. This approach sets a clear standard for Nigeria public service severance pay.
The process leading to these payments involved a rigorous verification and reconciliation exercise. This intricate procedure was collaboratively undertaken by the Ministry of Local Government and Chieftaincy Affairs, the State Audit Department, and the Local Government Service Commission. Verified beneficiaries received their entitlements directly through their bank accounts, while those experiencing account-related issues were advised to contact the ministry with the necessary documentation for resolution. The State Commissioner for Local Government and Chieftaincy Affairs, Ganiyu Hamzat, confirmed the successful completion of the payments in a telephone conversation on the same Tuesday.
Why It Matters
The settlement of these Ogun political office holders allowances represents a significant development in managing Ogun State outstanding liabilities. By clearing these long-standing severance payments, the state government establishes a crucial precedent for the resolution of similar financial obligations within the public service. This action underscores a commitment to fiscal responsibility and the welfare of former public servants, which could influence future policy decisions regarding entitlements.
This initiative provides a valuable framework for addressing outstanding public service severance liabilities not only in Ogun State but potentially for other state governments grappling with similar inherited financial burdens. For legal practitioners, this development offers a clear reference point when advising former office holders on claiming their legitimate entitlements, reinforcing the expectation that such obligations will eventually be met. The involvement of the Local Government Service Commission Ogun in the verification process further highlights the institutional commitment to ensuring due process in these disbursements.
Practical Implications
This establishes a precedent for the settlement of outstanding public service severance liabilities in Ogun State, offering a framework for lawyers advising former office holders on claiming entitlements or for other state governments managing similar inherited financial obligations.
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