Governor Oluwarotimi Akeredolu has earmarked total sum of #10.916billion for the payment of pensions ,gratuity of pensioners as well as payment of benefits to past governors and deputy governors.
The sum is also 13.8 percent of the total recurrent expenditure which has been provided for in the 2021 budget.
The state government however said it is not yet considering removing payment of benefits of past governors and deputy governors from the budgets because it was backed by the law.
The commissioner for economic planning and Budget ,Emmanuel Igbasan stated this while addressing news men in Akure the Ondo state capital.
Lagos governor ,Babajide Sanwoolu had last year proposed to commence processes of stopping the pensions of past governors and deputies in the state.
Sanwo-Olu said, “Mr Speaker and Honourable Members of the House, in light of keeping the costs of governance low and to signal selflessness in public service, we will be sending a draft executive bill to the House imminently for the repeal of the Public Office Holder (Payment of Pension Law 2007), which provides for payment of pension and other entitlements to former Governors and their Deputies.’’
Similarly, in Kwara state, the government last said paying pension and providing other attractive packages to former governors and their deputies in the state is not sustainable.
It warned warned that the state might become bankrupt if funds were continuously set aside monthly to pay more former governors and their deputies given the meagre resources available to the government.
Igbasan however said stopping the pensions of former governor Olusegun Mimiko , former deputy governors ,Omolade Oluwateru , Ali Olanusi and Lasisi Oluboyo, based on current economic realities, would involve legal backing.
He said “ As of now in Ondo state ,payment of this stipends to them is a creation of Law and until that law is reviewed, we just have to make a token provision for them and comply with the provision of extant laws.
But essentially, the bulk of that money would go into the payment of gratuities and retirement benefits of our top civil servants. ”

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