Manny Ita –
A major payroll fraud allegation involving approximately ₦13.7 billion has emerged in Osun State, prompting authorities to order an immediate and comprehensive audit of the state’s civil service payroll system.
Senior government officials disclosed that preliminary findings indicate the presence of thousands of questionable salary entries, including suspected ghost workers, duplicated records, and irregular allowances embedded within the payroll structure. The anomalies were reportedly uncovered during an internal review of personnel expenditures, which had shown a steady and unexplained rise despite limited recruitment into the public service.
According to officials familiar with the probe, the suspected fraud spans multiple ministries, departments, and agencies, raising concerns about systemic weaknesses in personnel management and financial oversight. The review reportedly flagged payments to individuals whose employment records could not be verified, as well as staff listed without corresponding postings or attendance documentation.
Government sources stated that the discovery has triggered a full-scale verification exercise involving biometric revalidation, physical headcounts, and cross-checking of employment files. The audit is expected to determine the exact number of legitimate workers on the state payroll and quantify the financial losses attributable to fraudulent entries.
Authorities said the exercise would also examine the roles of accounting officers, personnel managers, and other officials responsible for payroll administration, amid suspicions that the scheme may have involved insider collaboration over an extended period. Investigators are focusing on how the irregularities bypassed existing controls and whether deliberate manipulation of payroll software occurred.
A senior official described the situation as “a grave breach of public trust,” noting that funds meant for salaries, infrastructure, and social services may have been diverted through the alleged scheme. The official added that the government is committed to recovering misappropriated funds and prosecuting those found culpable, regardless of status.
Labour representatives in the state have expressed concern that genuine workers should not be punished for administrative failures, urging authorities to ensure that salary payments are not disrupted during the verification process. Some union leaders warned that delays or wrongful deletions from the payroll could trigger industrial unrest if not handled transparently.
Financial experts say payroll fraud remains one of the most pervasive forms of public sector corruption in Nigeria, often sustained by weak data systems, manual record-keeping, and inadequate monitoring mechanisms. They argue that sustained reforms — including digitized personnel databases, integrated payroll platforms, and periodic independent audits — are essential to prevent recurrence.
Officials indicated that the audit findings will be made public upon completion, as part of efforts to restore confidence in the state’s financial management and civil service administration. Investigations are ongoing, and further actions are expected once the verification exercise is concluded.
