Kano pension board clears N21 billion debt, vows support for retirees

The Kano State Pension Board has cleared over N21 billion from N48.6 billion liabilities inherited from previous administrations.

Executive Chairman of the Kano State Pension Fund Trustees, Alhaji Habu Fagge, made this known while addressing journalists in Kano as gathered by Diaspora Digital Media (DDM).

He described the pension situation under the previous government as “deeply troubling” for pensioners across the state.

Fagge explained that retirees faced unjustified deductions, often losing almost half of their already small monthly pensions.

“At one point, pensioners earning N6,000 had N3,000 deducted without any explanation or known formula,” he said.

He stated that the previous administration also borrowed from the pension fund, compounding the financial difficulties.

Fagge said recovery efforts began when Governor Abba Yusuf approved deductions from the source for pension remittances.

This move restored consistency in pension payments and enabled the board to achieve full monthly disbursements to retirees.

“We inherited N48.6 billion in liabilities, plus N75 billion owed by local governments and some MDAs,” Fagge added.

Despite the enormous debt, the board has cleared N16 billion so far, with N5 billion more ready for disbursement.

Fagge praised Governor Yusuf for prioritizing pension payments, despite the debts being inherited from past administrations.

“His concern for pensioners’ wellbeing motivated timely actions on clearing outstanding payments,” Fagge stated.

He addressed the board’s involvement in property investments in Bandirawo, Kwankwasiyya, and Amana housing projects.

Under the previous administration, he said, funds were loaned for property ventures, leading to legal battles.

Following court rulings and negotiations, 324 housing units were allocated to the pension board as settlement.

Fagge noted that the housing units had deteriorated significantly due to neglect.

The board opted to repurchase the units at a negotiated price of N4.5 billion, with government approval.

Necessary clearances were obtained from relevant state agencies before the final acquisition was completed.

On the issue of illegal deductions, Fagge explained that missing records had stalled investigations and legal actions.

“Without concrete evidence, litigation would only distract us from serving our pensioners effectively,” he said.

He revealed that the board currently holds over N4 billion in savings.

A proposal has been sent to the Board of Trustees to invest N3 billion in new property acquisitions.

The remaining N1.5 billion will be used to improve welfare support for pensioners statewide.

Fagge expressed concern over the rising number of retirees across the state.

“In December alone, over 4,100 new pensioners were enrolled following mass retirements,” he explained.

He mentioned that weekly interviews now accommodate between 200 to 300 new retirees.

Despite growing obligations, Fagge remained optimistic about the pension board’s future.

He cited salary increases and planned mass employment as potential sources of increased pension contributions.

“Our major challenge is the surge in gratuity and pension demands from enhanced retirement benefits,” he stated.

However, with continued reforms and government backing, he believes sustainability is achievable.

Fagge described the pension board office as a “hospital of last resort” for desperate pensioners.

He shared stories of retirees seeking help for hospital bills, rent, and essential needs.

“Our mission is to ensure that no pensioner is abandoned,” Fagge affirmed.

“By God’s grace, light is appearing at the end of the tunnel,” he concluded.

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