The Jigawa State and Local Governments Contributory Pension Scheme Board has disengaged five out of its six Pension Fund Administrators (PFAs) following a ₦6.9 billion bailout aimed at rescuing the scheme from financial distress. The Head of Civil Service, Muhammad Dagaceri, explained that the decision was taken to improve transparency, efficiency, and the long-term sustainability of pension fund management.
The disengaged PFAs—Veritas Pension, Leadway Pension, Fidelity Pension, Access Pension, and Oak Pension—were removed due to their failure to meet the expectations of the pension scheme. In their place, the government has engaged six new PFAs to take over the management of pension assets. These include Premium Pension Fund, which will serve as the lead PFA, along with PAL Pension, GT Pension, NLPC Pension, Norrenberger Pension, and Crusader Sterling Pension. The government decided to retain Norrenberger Pension due to its consistently satisfactory performance over the years.
Dagaceri stated that the newly selected PFAs underwent a rigorous screening process and will be responsible for managing funds, implementing investment strategies, monitoring fund performance, and enhancing customer service. He emphasized that this move is a crucial step toward ensuring that retired civil servants receive their benefits on time. By working with reputable pension administrators, the government aims to safeguard pension assets while improving their long-term sustainability.
The Executive Secretary of the Jigawa State Pension Scheme, Bilyaminu Aminu, revealed that the allocation of pension funds among the PFAs was based on their past performance and ability to generate returns on investment. The highest allocation was set at 20 percent, while the lowest stood at 16 percent. He assured pensioners that the state pension board will closely monitor the new partnerships to ensure compliance with regulations and the fulfillment of commitments to retirees.
Governor Umar Namadi has made significant financial interventions to support the pension scheme, injecting ₦2 billion in January 2024, ₦3.4 billion in August 2024, and an additional ₦1.5 billion in January 2025. Despite these efforts, the scheme has faced ongoing challenges, with observers warning that it could collapse without deeper structural reforms.
As Jigawa State moves forward with its revamped pension management strategy, attention will be focused on whether these changes bring the expected stability and efficiency to the system.
