The Kano State Government has established an executive committee tasked with recovering the sum of N1.8 billion that was illegally deducted from the salaries of civil servants by private loan vendors.
Government Suspends Loan Contracts and Withdraws as Third Party
In a decisive move, the government has ordered the immediate suspension of any further loan agreements between civil servants and private vendors. Additionally, it has announced the withdrawal of the government as a third party to such contractual arrangements.
During the inauguration of the 12-member committee on Thursday, the Secretary to the State Government (SSG), Alhaji Umar Faruq Ibrahim, revealed that an independent audit report had uncovered arbitrary deductions by some vendors from workers who had obtained soft loans.
Alhaji Ibrahim further explained that the audit report found multiple loan deductions by vendors exceeding the legally approved one-third salary deduction limit, thereby violating existing regulations.
Committee to Identify Affected Workers and Facilitate Refunds
According to the SSG, the State Executive Council approved the independent audit report and directed the committee, chaired by the Commissioner for Finance, Dr. Ismaila Aliyu Danmaraya, to identify all affected workers—both living and deceased—so that refunds can be processed.
He also clarified earlier reports suggesting that N1.5 billion was missing under the former Head of Service, Alhaji Abdullahi Musa. The SSG reaffirmed that the audit report had exonerated Musa of any misappropriation and confirmed that the actual amount illegally deducted was N1.8 billion.
The SSG expressed concern over the indiscriminate loan agreements between state civil servants and private loan vendors, noting that the total liabilities from such facilities currently stand at N13 billion. He warned that the government would no longer permit vendors to access the state payment system for further deductions.
“In February 2025, the government received complaints regarding illegal deductions from workers’ salaries in the name of loan repayments. Following the complaints, the cabinet presented a memo before the State Executive Council, which was graciously approved.
“Subsequently, the government engaged an independent audit firm to investigate the deductions, and the report was later presented before the council. Findings from the audit indicated arbitrary deductions from workers’ salaries in the name of loans obtained by the workers.
“The report also revealed that vendors granted multiple loans against the one-third salary deduction limit approved by law, among other findings. Upon submission of the report, the council directed the constitution of a committee to recover the illegal deductions and refund the affected beneficiaries,” the SSG stated.
Committee Membership
Other members of the committee include the state Attorney General and Commissioner for Justice; Head of Civil Service; Accountant General; Chairman, State Standing Committee; Local Governments Standing Committee; Director Computer Center; Permanent Secretary Establishment (Secretary); Principal Assistant Secretary (REPA); Commissioner Livestock; Hon Commissioner Planning and Budget; and the Chartered Accountant firm.
