Kano State Pension Board Clears N21 Billion of N48.6 Billion Debt
Kano, Nigeria – April 23, 2025
The Kano State Pension Board has successfully cleared over N21 billion of the N48.6 billion accumulated pension liabilities inherited from prior administrations, according to Alhaji Habu Fagge, the Executive Chairman of the pension fund trustees. This announcement came during a press briefing held in Kano, shedding light on the board’s ongoing efforts to resolve the pension crisis that has affected many retirees in the state.
Situation Under Previous Administration
Fagge described the conditions of the pension system prior to the current administration’s takeover as "deeply troubling." He highlighted significant issues, including irregularity and arbitrary deductions from pension disbursements that left many pensioners in dire financial straits. In some cases, retirees reported losing half of their monthly allowances without explanation—“at one point, pensioners receiving N6,000 had N3,000 deducted,” Fagge stated, emphasizing the lack of transparency in the previous government’s handling of pension funds.
Further compounding the problem, the former administration had also borrowed extensively from the pension fund, creating an unsustainable financial environment.
Board’s Recovery Efforts
The turnaround began following an initiative by Governor Abba Yusuf, who approved direct deductions from state revenues to ensure regular pension remittances. This policy has facilitated the board’s ability to achieve 100 percent monthly pension disbursements. Since taking office, the board has managed to settle N16 billion, with an additional N5 billion slated for disbursement soon.
“The governor has shown true empathy, assuming responsibility for the inherited debt and ensuring that payments are made, driven by a genuine concern for the welfare of pensioners,” Fagge remarked.
Addressing Legal and Structural Challenges
Fagge also spoke on the board’s involvement in property investments, which were originally financed under the previous administration. These investments sparked legal disputes that necessitated resolution through negotiations. Following court adjudications, 324 housing units were allocated to the pension board as part of a settlement agreement. However, many of these properties were found to be in poor condition and required significant investment. The board has opted to repurchase the properties for N4.5 billion, with state government approval.
When addressing the issue of fraudulent deductions under previous governance, Fagge expressed concern over the investigation’s effectiveness, citing missing records that hindered the ability to assess past illegal deductions accurately. “Without solid evidence, pursuing litigation would divert our focus from our primary goal—serving the pensioners,” he explained.
Financial Position and Future Strategies
Currently, the Kano State Pension Board boasts over N4 billion in savings. Fagge announced a proposal to utilize N3 billion for acquiring more properties and allocating the remaining N1.5 billion to welfare initiatives for pensioners.
However, the board faces mounting pressure as the number of pensioners continues to rise. With over 4,100 new retirees enrolled in December alone, the board is actively conducting weekly interviews with 200 to 300 new pensioners, escalating their responsibilities amid ongoing mass retirement trends.
Despite these challenges, Fagge remains optimistic. He pointed to recent public sector salary increases and the state government’s plans for mass employment initiatives as potential improvements to pension contributions in the coming months. “Our biggest challenge now is the surge in gratuity and pension obligations due to increased retirement benefits. But with continued reforms and government support, we believe we are on a sustainable path forward,” he stated.
Fagge poignantly characterized the board office as a “hospital of last resort,” relating stories of desperate pensioners who come seeking financial assistance for essential needs. “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 concluded.
As the Kano State Pension Board continues its efforts to rectify past financial mismanagement and improve the lives of its pensioners, it remains to be seen how effectively these reforms will address the needs of the thousands depending on timely and reliable pension payments.
Share this article:
