• Sunday, January 12, 2025
businessday logo

BusinessDay

Kano spends N48bn on payment of retirees’ claims

Kano spends N48bn on payment of retirees’ claims

The Kano State government has said that it spent about N48 billion on arrears in order to relieve the suffering of retirees in the state whose claims of gratuities have been in arrears for the past eight years.

The amount was said to have been redeemed in three tranches of under the Kano State Pension Trust Fund

Governor Abba Yusuf made the disclosure during the official launch of 3rd tranche of N5 billion payment of backlog of gratuities and death benefits of retirees at the open arena, Government House in Kano.

Governor Yusuf sympathised with the state pensioners who he said had passed through difficult times and untold hardship during the Abdullahi Ganduje administration.

He emphasised that hundreds of the retirees had lost their lives while waiting endlessly for their entitlements that were denied for no just reason.

“The perennial neglect of Ganduje’s administration to settle pensioners’ entitlements in the last eight years of his government has subjected pensioners to hardship in Kano.

“This is the biggest social security threat ever witnessed since the creation of Kano State in 1967. Many have lost their lives while waiting endlessly for their gratuities,” Yusuf said.

The governor explained that the release of cumulative sum of N16 billion gratuities to about 6,886 retirees in three tranches was part of his campaign promises to ease the pain of senior citizens who had contributed immensely to public service while in active service.

According to him, payment of backlog gratuities to the lawful beneficiaries is not only an obligation, but a moral right of every leader. He assured the retirees of transparent processes of the payment which they would receive through electronic system from government treasury.

He released additional N846 million unclaimed death benefit, directed the state head of service, the Sharia commission and pension fund trustee to intensify search and identify relatives of the deceased pensioners for payment.

“Out of over N48 billion inherited, we commenced settlement process with N6 billion being the 1st tranche to 2,2667 retirees. Few months later we released the second tranche of N5 billion to 2,216 pensioners. Today, I am overwhelmed with joy to witness the launch of the 3rd trench of N5 billion for 2,000 beneficiaries.

“We are not paying the pensioners in cash because we don’t have confidence in the cash payment, and we would not allow the irregularities that characterised the past administration to recur. You will all be paid through bank account directly to your account,” he assured the beneficiaries.

Yusuf used the occasion to announce approval for upward review of minimum pensioners’ award from N5,000 to N20,000 to reflect the impact of inflation, and its resultant implications largely on purchasing power of the people.

Earlier, the President, Nigerian Union of Teachers, Titus Audu Amba lauded the commitment of Kano State government to reduce the overwhelming burden of pension gratuities in Kano.

He challenged other Nigerian governors to imbibe the rare gesture of Governor Yusuf on pensioners’ entitlements, stressing that the N16 billion would not only change the life of the immediate beneficiaries but improve the macro economic system of the state.

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp