A recent audit report has shed light on significant financial irregularities in Kano State, Nigeria, revealing widespread mismanagement of public funds across various ministries and state-owned agencies. The report, which examined the state’s accounts as of December 31, 2024, highlights substantial gaps in internal controls and repeated violations of financial laws.
The audit identified multiple breaches, including failure to deduct statutory taxes, unretired expenditures, undocumented foreign travel, underreported turnover, and overstated income. Notably, the Ministry of Transportation paid a contractor N81,348,000 without deducting N12,202,202 in statutory taxes, violating the FIRS Act, 2007. The Ministry of Higher Education was also flagged for paying N25,383,500 as educational support to students without any acknowledgement or signature from beneficiaries, as well as unretired expenditures of N25,776,000 spent on staff conferences.
The Ministry for Religious Affairs was found to have transferred N33,700,000 directly into personal accounts without any retirement or explanation, a serious breach of public finance rules. The Kano Agricultural Supply Company, KASCO, was identified as the worst offender, with massive underreporting and poor governance. The company reported a turnover of N4.76 billion, but auditors discovered the real figure was N5.31 billion, an underreporting of N1.23 billion.
Other discrepancies at KASCO included underreported blending fees, understated interest income, and unaccounted inter-bank transfers. The audit also flagged poor record-keeping, lack of production data, and missing asset and debt registers. When contacted, the Kano State Commissioner for Information refused to respond to inquiries on the findings.
The audit report’s findings have significant implications for the state’s financial management and accountability. The identified breaches and irregularities underscore the need for improved internal controls and adherence to financial laws. The report’s publication has brought attention to the importance of transparency and good governance in public financial management, highlighting the need for swift action to address these issues and ensure accountability in the use of public funds.
