The Kano State Pension Fund Trustees has announced a significant reduction in inherited pension debt, confirming that over ₦21 billion has been cleared from the ₦48.6 billion backlog left by the previous administration.
Speaking to journalists in Kano, the Chairman of the Pension Fund, Habu Fagge, said the achievement was made within Governor Abba Kabir Yusuf’s first two years in office. According to Fagge, the situation at the board prior to the current administration’s intervention was “deeply troubling,” with pensioners facing erratic and unjustified deductions from their already modest entitlements.
“At one point, pensioners receiving N6,000 had N3,000 deducted without explanation. We couldn’t find any clear formula for the deductions,” he stated.
Fagge further explained that the previous government had taken substantial loans from the pension fund, pushing it into a state of severe financial hardship. In response, Governor Yusuf authorised direct deductions at source for pension contributions, a move that helped restore consistent monthly payments and enabled the board to reach full disbursement levels.
“We inherited N48.6 billion in liabilities and also had to remit N75 billion that had been levied on local governments and some MDAs. Despite this, we’ve managed to settle N16 billion so far, with another N5 billion scheduled for disbursement soon,” he revealed.
He commended the governor for his compassionate approach, noting that although the debt was inherited, he prioritised its settlement out of genuine concern for the welfare of the state’s pensioners.