August 5, 2025

Kano Clears ₦21bn Pension Debt, Targets Full Recovery

The Kano State Pension Board has cleared over ₦21 billion in pension liabilities from the ₦48.6 billion debt inherited from previous administrations.

This was disclosed by the Executive Chairman of the Kano State Pension Fund Trustees, Alhaji Habu Fagge, during a press briefing in Kano.

He described the state of the board at the start of the current administration as “deeply troubling,” citing irregular and arbitrary deductions under the former government.

“Pensioners had deductions of up to 50 per cent from their already meagre entitlements. In one case, someone receiving ₦6,000 had ₦3,000 deducted without explanation,” he said.

Fagge noted that the previous administration had borrowed from the pension fund, and recovery only began after Governor Abba Yusuf approved direct deductions for pension remittances. This allowed the board to resume regular monthly disbursements.

“We inherited ₦48.6 billion in liabilities and an additional ₦75 billion to remit on behalf of local governments and some MDAs. Despite this, we’ve paid ₦16 billion so far, with another ₦5 billion scheduled for disbursement,” he said.

He commended the governor for taking responsibility, noting that payments were made out of concern for pensioners despite the inherited debt.

Fagge also addressed the board’s involvement in housing schemes in Bandirawo, Kwankwasiyya, and Amana. He said loans given for property investments under the previous administration led to legal disputes. Following a court ruling, 324 housing units were allocated to the board as settlement.

“These properties were in disrepair. The board repurchased them for ₦4.5 billion after state government approval,” he said.

On the issue of illegal deductions, Fagge said investigations were hindered by missing records. “Without evidence, legal action would be futile and distract from our core duty—serving pensioners.”

He revealed that the board currently has over ₦4 billion in savings and has proposed to use ₦3 billion to acquire new properties and ₦1.5 billion to enhance pensioners’ welfare.

Fagge expressed concern about the rising number of retirees, revealing that over 4,100 pensioners were enrolled in December alone. “We now conduct weekly interviews for 200 to 300 retirees,” he said.

Despite the mounting pressure, he expressed optimism, citing salary increases and the state government’s plans for mass employment as positive signs.

“Our major challenge is the growing burden of gratuity and pension obligations, but with continued reforms and government support, we are on a sustainable path,” he said.

Describing the pension board office as a “hospital of last resort,” he recounted how pensioners often seek support for hospital bills, rent, and basic needs.

“Our concern is the people’s concern. We are doing our best to ensure that no pensioner is left behind. By God’s grace, there is light at the end of the tunnel,” he said.

Vinkmag ad

Read Previous

Anambra Health Workers Demand Full CONHESS Implementation, Warn of Strike

Read Next

Judiciary Union Halts Indefinite Action in Benue

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular