Management of Kano Electricity Distribution Company (KEDCO) has responded to concerns over unremitted pension deductions, acknowledging longstanding arrears while attributing the bulk of the liabilities to the previous management before its acquisition by Future Energies Africa (FEA).

In a statement issued and signed by its Head of Corporate Communications, Sani Bala Sani, the company said it wishes to address recent concerns regarding unremitted pension deductions, which have understandably ruffled the workforce and the broader public.

KEDCO said when FEA acquired the utility in November 2023, it inherited a company burdened by years of systemic failures and financial mismanagement.

“Approximately 90 per cent of the current pension arrears, representing over six years of unremitted contributions accumulated under previous management and core investors before our acquisition,” the DisCo noted

According to the company, workers were the victims of the institutional lapses, as pension contributions were not remitted to Pension Fund Administrators (PFAs) as required by law.

It described the situation as “not just a financial irregularity,” but “a fundamental breach of trust with employees who depend on these contributions for their future security.”

FEA said upon assuming control, its immediate priority was to stabilise operations and halt KEDCO’s deteriorating business performance.

“To date, over 80 per cent of agreed 2025 pension remittances have been successfully paid,” the company stated, describing this as progress toward normalising current pension obligations while efforts continue to clear inherited arrears.

KEDCO also disclosed that it has been in negotiations with the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC), resulting in concrete commitments.

On post-acquisition liabilities, it said: “We have committed to settling all pension obligations that accrued under our management, and we are making progress.”

Regarding pre-acquisition liabilities, the company said it is working with labour unions, the Bureau of Public Enterprises (BPE) and other stakeholders to establish “a clear, realistic timeline” for resolving the substantial pension arrears.