The Kano State Pension Board has cleared more than N21 billion in pension liabilities out of a total N48.6 billion debt inherited from previous administrations, according to the Executive Chairman of the Pension Fund Trustees, Alhaji Habu Fagge.
Speaking at a press briefing in Kano, Fagge described the state of the board when the current administration took over as “deeply troubling.” He revealed that pensioners under the past government faced irregular deductions—sometimes losing up to half of their monthly payments without explanation.
“At one point, pensioners receiving N6,000 had N3,000 deducted with no clear reason,” he said, adding that the previous administration also borrowed from the pension fund.
Recovery efforts began when Governor Abba Yusuf authorized direct deductions for pension contributions, enabling the board to make consistent payments. “We’ve paid off N16 billion so far, with another N5 billion set for disbursement soon,” Fagge said.
He praised the governor for taking responsibility despite inheriting the debt. “His empathy has ensured that pensioners are getting what they are owed,” he added.
Fagge also addressed issues surrounding housing projects in Bandirawo, Kwankwasiyya, and Amana. He explained that the pension board had loaned funds to the previous government for property investments, which led to legal disputes. Following negotiations and a court ruling, 324 housing units were allocated to the board as part of a settlement. These units were later repurchased by the board at a negotiated N4.5 billion price approved by the state government.
On the issue of illegal deductions, Fagge admitted that investigations were difficult due to missing records. “Without proper documentation, pursuing legal action would be a distraction from our mission,” he said.
The board currently has over N4 billion in savings and has proposed using N3 billion to purchase new properties and the remaining N1.5 billion to improve pensioners’ welfare.
However, challenges remain. In December alone, over 4,100 new retirees were added to the system due to mass retirements. Fagge said the board is now interviewing 200 to 300 new retirees weekly.
Despite this, he remains hopeful. He noted that recent increases in public sector salaries and planned mass employment could help boost pension contributions.
“Our biggest challenge is the rising cost of gratuities and pensions,” he said. “But with continued reforms and government support, we believe the system is on the right path.”
Fagge described the pension board as a “hospital of last resort,” sharing stories of retirees seeking help for medical bills, rent, and basic needs. “We’re committed to making sure no pensioner is left behind. By God’s grace, we are seeing light at the end of the tunnel,” he concluded.