Former Minister of Finance, Kemi Adeosun, has
disclosed how the Federal Government leveraged technology to uncover widespread
payroll fraud, identifying over 45,000 “ghost workers” through the use of the
Bank Verification Number (BVN) system.
She made this known while speaking at the Citadel
School of Government Dialogue series in Lagos, where she reflected on efforts
to reform Nigeria’s public sector payroll system during her time in office.
According to Adeosun, personnel costs represented the
largest portion of government expenditure at the time, yet the payroll system
was riddled with inefficiencies and fraudulent practices. Earlier attempts to
address the issue using biometric verification had limited success, largely due
to resistance from some paramilitary organisations, including the police and
military, which were unwilling to fully adopt centralised verification
processes.
To overcome these challenges, the government adopted a
different strategy by integrating the existing Bank Verification Number
database into the payroll system, rather than introducing a new biometric
framework.
By cross-checking payroll records against BVN data,
authorities were able to detect significant irregularities. The process
revealed thousands of cases where individuals were receiving multiple salaries
under different identities or where names remained on the payroll despite the
individuals having died or left service.
Adeosun explained that the term “ghost worker” can
sometimes be misleading, noting that many cases were not part of sophisticated
fraud networks but rather the result of weak administrative systems and
individual exploitation.
She pointed out that in several instances, a single
BVN was linked to multiple salary payments, highlighting loopholes that allowed
abuse of the system to persist over time.
The reform, she said, demonstrated how
technology-driven solutions can improve transparency, reduce waste, and
strengthen accountability in public finance management.
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