The Kano State Pension Board has successfully cleared over N21 billion of the N48.6 billion in pension liabilities it inherited from previous administrations. The development marks a major step toward financial reform and restoring the dignity of pensioners in the state.
The Executive Chairman of the Kano State Pension Fund Trustees, Alhaji Habu Fagge, disclosed this during a press briefing in Kano. He described the situation before the current administration took over as deeply troubling.
“Pensioners suffered irregular and arbitrary deductions under the previous government, sometimes losing half of their meager monthly entitlements,” he said.
He cited instances where pensioners receiving N6,000 had as much as N3,000 deducted without explanation. “We couldn’t find any clear formula for the deductions,” he added.
Fagge revealed that the previous administration had borrowed from the pension fund, contributing to the massive debt. A major turnaround began when Governor Abba Kabir Yusuf approved the deduction of pension contributions directly from the source, allowing for regular remittances and full monthly payments to retirees.
“We inherited N48.6 billion in liabilities and also had to remit N75 billion levied on local governments and some MDAs. In spite of this, we’ve managed to settle N16 billion so far, with another N5 billion scheduled for disbursement soon,” he said.
He praised the governor for his intervention. “Even though the debt was inherited, the governor took responsibility and ensured payments were made, purely out of concern for the pensioners.”
Fagge also addressed the board’s involvement in housing projects in Bandirawo, Kwankwasiyya, and Amana. Under the previous administration, the pension board had loaned funds for property investments which later led to legal disputes. After a court ruling and negotiations, 324 housing units were allocated to the board as part of the settlement.
“Those properties were in poor condition and neglected. The board opted to repurchase them at a negotiated rate of N4.5 billion, which was approved by the state government after clearance from relevant agencies,” he explained.
On the issue of illegal deductions under the previous administration, Fagge admitted that missing records had hindered investigations.
“Without evidence, litigation would be fruitless and distract from our core duty—serving the pensioners,” he said.
Currently, the board has over N4 billion in savings. Fagge said a proposal has been submitted to the Board of Trustees to use N3 billion for acquiring more properties and the remaining N1.5 billion to support pensioners’ welfare.
He also raised concern over the growing number of retirees in the state. “In December alone, over 4,100 new pensioners were enrolled due to mass retirements. With weekly interviews of about 200 to 300 retirees, the pressure is mounting.”
Despite the challenges, he expressed optimism, pointing to recent increases in public sector salaries and upcoming mass employment plans by the government as potential boosts to pension contributions.
“Our biggest challenge now is the surge in gratuity and pension obligations due to increased retirement benefits. But with continued reforms and support from the government, we believe we are on a sustainable path,” he said.
Fagge described the pension board office as a “hospital of last resort,” where many pensioners show up seeking funds for basic needs such as hospital bills, rent, and food.
“Our concern is the people’s concern. We are working to ensure that no pensioner is left behind. By God’s grace, we are seeing light at the end of the tunnel,” he said.
