…Orders loan firms to refund workers

The Kano State Government has dismissed allegations of N1.8 billion mismanagement levelled against the immediate past Head of Service, Abdullahi Musa, clarifying that the funds in question were illegally deducted from civil servants’ salaries by loan vendors.

The Secretary to the State Government (SSG), Umar Farouk Ibrahim, said the claims were based on misinformation, following an investigation ordered by Governor Abba Kabir Yusuf during the 2026 Workers’ Day celebrations.

The controversy began after the Nigeria Labour Congress (NLC) in Kano State, through its chairman, Kabiru Inuwa, alleged that the former Head of Service had mismanaged public funds. The governor subsequently directed the SSG to probe the matter and establish the facts.

Speaking at a Dinner and Award Night organised by the state government in collaboration with the NLC at the Government House, Kano, Ibrahim explained that the findings of the probe contradicted the initial allegations.

A statement issued on Saturday by the governor’s Chief Press Secretary, Mustapha Muhammad, said the SSG disclosed that the N1.8 billion was not missing or diverted by any government official, but rather represented excessive and unauthorised deductions made by loan vendors from workers’ salaries.

According to Ibrahim, the state government engaged an independent professional auditing firm to conduct a detailed review of the payroll system and examine the accounts of affected civil servants within the period under investigation.

“The audit established that several loan vendors imposed charges far above the agreed contractual terms, leading to illegal deductions from workers’ earnings,” he said.

He added that the government had earlier suspended the loan scheme to enable a thorough investigation and prevent further financial exploitation of civil servants.

The audit report, he noted, revealed that the cumulative overcharges by the vendors amounted to more than N1.8 billion, thereby shifting responsibility away from the former Head of Service and other government officials.

Based on the findings, Ibrahim said the State Government has directed all implicated loan vendors to refund the total sum of N1.8 billion. He added that the recovered funds would be redistributed to the affected civil servants in a transparent and equitable manner.

“The Government remains committed to protecting the welfare of its workforce and ensuring accountability across all financial transactions involving public servants,” the SSG stated.

He further assured workers that measures would be put in place to regulate loan schemes and prevent a recurrence of such practices, including stricter oversight of third-party financial service providers operating within the state payroll system.

The development is expected to ease concerns among civil servants and restore confidence in the state’s payroll management, while also reinforcing the administration’s stance on transparency and workers’ welfare.

The Kano State Government reiterated its commitment to safeguarding public funds and holding any entity found culpable in financial misconduct accountable, irrespective of whether they are within or outside the public service.

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