Kano Pension Board Pays Off Nearly Half of Inherited N48.6bn Debt
The Kano State Pension Board has settled over N21 billion in pension liabilities out of a total N48.6 billion debt inherited from past administrations, according to the News Agency of Nigeria (NAN).
Executive Chairman of the state pension fund trustees, Alhaji Habu Fagge, told journalists in Kano that the state’s pension system was in crisis before Governor Abba Kabir Yusuf assumed office.
“The state the board was at the time of the current administration’s takeover was deeply troubling,” he said, noting that pensioners were subjected to arbitrary deductions, sometimes losing half of their monthly payments without justification.
“At one point, pensioners receiving N6,000 had N3,000 deducted without explanation,” Fagge said, adding that there was no formula for these cuts. He further revealed that the previous government borrowed from the pension fund, leaving a heavy burden on the current administration.
Since assuming office, Governor Yusuf has approved direct deductions at source for pension remittances, helping restore full monthly payments and enabling the board to reach 100 percent disbursement levels.
“In spite of this, we’ve managed to settle N16 billion so far, with another N5 billion scheduled for disbursement soon,” Fagge added.
The board also addressed past property investments that led to legal disputes. Following a court settlement, 324 housing units were reclaimed and repurchased at N4.5 billion.
Currently, the board has over N4 billion in savings and plans to invest N3 billion in property acquisition while using the rest to support pensioners’ welfare.
Fagge expressed concern over the rising number of retirees, stating that “in December alone, over 4,100 new pensioners were enrolled.”
Despite mounting obligations, he remained hopeful: “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.”
