The Kano government is angry that loan sellers deducted N1.8 billion from the salaries of civil servants

The Kano State Government has expressed displeasure over the activities of private loan vendors in the state following the illegal deduction of N1.8 billion from the salaries of civil servants by the vendors.

As a result, the agency directed the immediate suspension of further loan contracts between civil servants and private vendors, and established an executive committee to recover the amounts.

The state government also announced the government’s withdrawal as a third party in the contract agreement.

While inaugurating the 12-member committee on Thursday, the Secretary to the State Government (SSG), Alhaji Umar Faruq Ibrahim, explained that an independent audit report revealed that some vendors made arbitrary cuts to workers who obtained concessional loans.

Alhaji Ibrahim further stated that the audit report found repeated loan deductions by vendors exceeding one-third of the salary deductions officially approved by law, thereby violating existing regulations.

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According to the SSG, the State Executive Council approved the independent audit report and instructed the committee, headed by the Financial Commissioner, Dr. Ismaila Aliyu Danmaraya, to identify affected workers, both dead and alive, for subsequent refund.

He also clarified an earlier report which stated that N1.5 billion went missing during the tenure of former Head of Service, Alhaji Abdullahi Musa. The SSG reiterated that the audit report exonerated Musa of any misappropriation and confirmed that the actual amount illegally deducted amounted to N1.8 billion.

The SSG deplored the indiscriminate loan agreements between civil servants and private loan vendors, and noted that the total liabilities of the facility currently stands at N13 billion. He warned that the government would no longer allow vendors to access the country’s payment system for further cuts.

“In February 2025, the government received complaints regarding illegal deductions from workers’ salaries in the name of loan repayment. Following the complaints, the cabinet submitted a memo to the State Executive Council, which was approved favorably.

“Subsequently, the government commissioned an independent audit firm to investigate the deductions, and the report was then submitted to the board. The findings of the audit showed arbitrary deductions from workers’ salaries in the name of loans obtained by the workers.

“The report also revealed that the vendors provided multiple loans against the one-third salary deduction limit approved by law, and other findings. After submission of the report, the board directed the formation of a committee to recover the illegal deductions and return funds to the affected beneficiaries,” the SSG said.

Other committee members include the Attorney General and Commissioner of Justice; Head of Civil Service; First accountant; Chairman, State Standing Committee; Standing Committee on Local Government; Director of the Computer Center; Establishment Permanent Secretary (Secretary); Principal Assistant Secretary (REPA); Livestock Commissioner; Planning and budgeting of the Hon Commissioner and the firm of Chattered Accountants.
The Kano State Government has set up an executive committee to recover the sum of N1.8 billion illegally deducted from the salaries of civil servants by private loan vendors.