Mohamed Garba
In a significant step towards restoring trust in the state’s pension system, the Kano State Pension Board has cleared more than N21 billion from a daunting legacy debt of N48.6 billion inherited from previous state administrations. The announcement, made by the Executive Chairman of the Kano State Pension Fund Trustees, Alhaji Habu Fagge, highlights a series of reforms designed to correct years of financial mismanagement.At the time the current government assumed control, the pension board faced a dire financial situation.
“The state of the board was deeply troubling,” Fagge explained to reporters, recalling a period when pensioners experienced irregular and arbitrary deductions.
“At one point, pensioners receiving N6,000 had N3,000 deducted without any clear formula for the deductions.”
These harsh measures had severely impacted many retirees who already depended on limited monthly incomes.The financial woes were compounded by borrowing practices under the previous administration. According to Fagge, part of the inherited liabilities stemmed from such borrowings from the pension fund.
However, transformative policy decisions by Governor Abba Yusuf have reversed this trend. By approving direct deductions from the source for pension remittances, the governor’s measures helped restore regularity in pension payments, achieving a 100 percent monthly disbursement rate.
Despite the uphill battle, the board has managed to settle N16 billion of the liabilities, with another N5 billion slated for disbursement in the near future. In addition to tackling debt, the board has restructured its approach to asset management. Under controversial past policies, funds had been funneled into housing projects in areas including Bandirawo, Kwankwasiyya, and Amana. Legal battles and subsequent negotiations culminated in a settlement that awarded 324 housing units to the board.
Although these properties were initially in poor condition, the board successfully repurchased them at a negotiated rate of N4.5 billion—a decision approved by the state government following clearance from regulatory agencies.The board’s financial prudence has created a reserve exceeding N4 billion. Looking forward, proposals have been tabled to reinvest N3 billion in additional property acquisitions while allocating N1.5 billion to bolster the welfare of pensioners. These strategic moves are essential as the board braces for a surge in pension obligations.
In December alone, over 4,100 new pensioners were registered due to mass retirements, and interviews with an estimated 200 to 300 retirees are conducted weekly—an operational pressure that underscores the need for sustainable reforms.
Despite the challenges, Chairman Fagge expressed cautious optimism. Improvements in public sector salaries and imminent mass employment initiatives by the state government offer hope that pension contributions will increase, easing future obligations related to gratuity and pension benefits.
Describing the pension board as a “hospital of last resort,” Fagge recounted poignant instances of retirees desperately seeking funds for essentials such as hospital bills, rent, and daily 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 affirmed.
The sweeping reforms by the Kano State Pension Board mark a significant turnaround in the management of pension liabilities. While challenges remain—especially with an ever-growing retiree population—the board’s current trajectory and government backing are poised to secure a more sustainable financial future for pensioners across the state.
