The Kano State Pension Fund Trustees says it has cleared N21 billion out of the N48.6 billion pension liabilities inherited from previous administrations in the state.
Executive Chairman of the Board, Alhaji Habu Muhammad Fagge, disclosed this during an interview with journalists in Kano on Wednesday, describing the condition of the pension fund at the time Governor Abba Kabir Yusuf took office as “deeply troubling.”;
“We inherited N48.6 billion in liabilities and also had to remit an additional N75 billion levied on local governments and some Ministries, Departments, and Agencies (MDAs),”; Fagge said.
“Despite this burden, we’ve managed to settle N16 billion so far, with another N5 billion scheduled for disbursement soon.”;
He added that the current administration had to deal with the fallout from extensive borrowing from the pension fund by the previous government, a situation that had left many pensioners in distress.
“At one point, pensioners receiving N6,000 had N3,000 deducted without explanation. We couldn’t find any clear formula for the deductions,”; Fagge revealed. “Pensioners were subjected to arbitrary and irregular deductions.”;
He credited Governor Abba Yusuf for approving deductions from the source for pension remittances, restoring regular payments, and enabling the board to reach 100% monthly pension disbursement.
“Even though the debt was inherited, His Excellency took responsibility and ensured that payments were made, purely out of concern for the pensioners,”; he added.
Speaking on the recovery of assets, Fagge noted that the board had reclaimed 324 vandalized housing units from previous investments gone awry.
“Those properties were in poor condition. The board opted to repurchase them at a negotiated rate of N4.5 billion after clearance from relevant state agencies,”; he explained.
Fagge also touched on ongoing challenges, especially the surge in new retirees. “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,”; he said.
Despite these hurdles, he expressed optimism, citing recent salary increases and upcoming mass employment as hopeful signs for the sustainability of the fund.
He described the pension board office as a hospital of last resort, where many retirees come seeking support for 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,”; Fagge concluded.
