N24bn pension ‘fraud’o raises fresh fears over public funds
By Anthony Otaru, Abuja
The discovery of N24 billion allegedly linked to ghost workers’ pension payments has triggered fresh concerns over the vulnerability of public funds, with economic experts calling for urgent reforms to Nigeria’s payroll and pension management systems.
The experts said the disclosure by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) exposed systemic weaknesses across ministries, departments and agencies (MDAs), warning that fraudulent personnel records could facilitate the diversion of billions of naira meant for legitimate workers and retirees.
They called for the deployment of unified digital databases, continuous biometric verification, and stronger cross-checking mechanisms to prevent fictitious names from being added to government payrolls.
The ICPC Chairman, Dr Musa Aliyu, had disclosed that the commission uncovered N24 billion earmarked for ghost workers’ pensions in 2024, adding that two years later, no individual had appeared to claim the money or challenged its seizure in court.
Aliyu disclosed while delivering a lecture titled “Anti-Corruption Reforms, Economic Stability and Effective Communication,” organised by Economic Confidential in Abuja.
According to him, the investigation uncovered cases in which civil servants allegedly enrolled relatives on government payrolls and collected salaries and pension-related benefits in their names.
“In 2024, this commission uncovered N24 billion earmarked for ghost workers’ pension. In one case, a single individual enrolled 14 members of his family and was collecting 13 salaries,” Aliyu said.
The ICPC chairman said the commission would continue investigating payroll fraud and take steps to safeguard public resources.
*Experts seek unified databases to block payroll manipulation across MDAs
Reacting to the disclosure, the President of the Institute of Fiscal Studies, Godwin Ighedosa, urged the Federal Government to implement the Oronsaye Report on the restructuring and rationalisation of federal government parastatals, commissions and agencies.
Ighedosa said the report, released in 2012, recommended the rationalisation of government agencies through measures including the scrapping, merger, subsumption and relocation of several institutions.
He argued that implementing the recommendations could reduce duplication, strengthen oversight and limit opportunities for corruption within the public service.
Prof Sheriffdeen Tella said the latest revelation highlighted persistent weaknesses in salary and pension administration across ministries and government agencies.
According to him, fraudulent entries could extend beyond basic salaries to other benefits, including housing, health insurance, mortgage and pension schemes.
“They usually overload payment vouchers with fictitious names and surnames in a kind of permutation that even deprive beneficiaries of their entitlements,” Tella said.
He also raised concerns about reports that retirees are allegedly being compelled to pay bribes to access their legitimate benefits.
Tella called for severe consequences for officials found guilty of manipulating payroll systems, arguing that punishment must be visible enough to deter others.
“Until those caught in such acts are publicly dismissed and disgraced, the acts continue,” he said.
Emeritus Prof. Akan Ekpo advocated a comprehensive tracking system to enable the government to monitor pension payments across MDAs and identify suspicious transactions.
He also called for independent investigations into the alleged payroll racketeering and prosecution of those found culpable.
“They need to face the law to serve as a deterrent to others,” Ekpo said.
Prof Uche Uwaleke said the N24 billion discovery reinforced concerns about weaknesses in Nigeria’s public expenditure controls.
Uwaleke, the first Professor of Capital Market, advocated continuous biometric audits and technology-driven payroll verification to prevent recurring fraudulent personnel records.
“Eliminating ghost workers and fraudulent pension claims frees up fiscal space needed to fund capital projects and satisfy genuine civil service obligations,” he said.
Professor Ken Ife similarly called for regular personnel verification rather than waiting for whistle-blowers or reactive investigations after public funds had already been lost.
He said the government should identify and seal vulnerabilities in payroll systems before they are exploited.
The experts maintained that recovering stolen or improperly allocated funds was only part of the solution, stressing that preventing future leakages should be the priority.
They called for integrated personnel databases linking relevant government institutions, regular biometric verification, tighter payment controls and prompt prosecution of officials involved in payroll fraud.
According to them, plugging recurrent leakages would create additional fiscal space for government to finance infrastructure, education, healthcare and other critical development needs at a time of significant pressure on public resources.
