Kano Pension Board Clears ₦21bn of ₦48.6bn Inherited Debt

The Kano State Pension Board has successfully paid #21 billion of the #48.6 billion pension debt it inherited from previous administrations, as reported by board chairman Alhaji Habu Fagge. Fagge highlighted that earlier governments imposed arbitrary deductions and mishandled pension funds, resulting in many retirees facing hardships.

Some pensioners allegedly lost up to half of their benefits without any clear justification. In response, Governor Abba Yusuf has authorized reforms that include direct deductions from salaries and the full monthly distribution of funds to aid in recovery efforts. An additional ₦5 billion is expected to be disbursed shortly. The board is also overseeing the management of housing assets recovered from legal disputes and plans to reinvest ₦3 billion from its #4 billion savings into property acquisitions, with #1.5 billion dedicated to enhancing pensioner welfare. In December alone, more than 4,100 new retirees entered the system, adding strain to pension liabilities.

However, Fagge remains optimistic due to anticipated salary increases and plans for large-scale job creation. To further support pensioners, the board has initiated a biometric verification process to eliminate ghost pensioners, ensuring that only legitimate retirees receive their benefits. This initiative is projected to save the state approximately ₦1.2 billion annually.
Additionally, the board is partnering with the state government to develop a pensioners' village, which will offer affordable housing and recreational facilities for retirees. This project, valued at #2.5 billion, is expected to be completed within the next two years. Fagge credited the board's progress to the governor's dedication to pension reform and the hard work of its staff. He reassured pensioners of the board's commitment to settling the remaining debt and enhancing their overall welfare. As the board continues to make headway in addressing the inherited debt, pensioners in Kano State can begin to enjoy their retirement with greater dignity and assurance. The payment of #21 billion marks a significant achievement in the state's pension reform efforts, and the board's focus on transparency and accountability offers hope for a brighter future.

In the coming months, the board intends to hold a series of town hall meetings with pensioners to provide updates on progress and gather feedback on how to improve the pension system. This inclusive strategy aims to foster a sense of ownership and trust among pensioners, which is vital for the success of the ongoing reforms. With the #21 billion payment, the Kano State Pension Board has shown its commitment to tackling the pension crisis left by previous administrations. As the board strives to eliminate the remaining debt, pensioners can look forward to a more secure future where their hard-earned benefits are safeguarded and their welfare is prioritized.