The Kano State Government has cleared the immediate past Head of Service, Abdullahi Musa, of allegations of mismanaging N1.8 billion, following an investigation that traced the funds to excessive deductions by loan vendors operating within the state civil service.

The clarification was given by the Secretary to the State Government (SSG), Alhaji Umar Farouk Ibrahim, following a directive by Governor Abba Kabir Yusuf to investigate the allegation raised during the 2026 Workers’ Day celebration.

A statement issued by the governor’s Chief Press Secretary, Mustapha Muhammad, said the issue came to the fore when the Kano State chairman of the Nigeria Labour Congress (NLC), Kabiru Inuwa, alleged that the former Head of Service mismanaged public funds.

Speaking at a Dinner and Award Night organised by the state government in collaboration with the NLC at the Government House, Kano, the SSG said findings from an investigation showed that the N1.8 billion was not misappropriated by any government official.

Instead, he explained that the amount was traced to excessive deductions from civil servants’ salaries by loan vendors operating within the state.

According to him, the governor had directed his office to engage an independent auditing firm to examine the state payroll system and review transactions involving affected workers.

“The audit revealed that several loan vendors were charging workers rates far above agreed terms, leading to illegal accrual of over N1.8 billion,” Ibrahim said.

He added that the loan scheme had been temporarily suspended to allow for a comprehensive review.

The SSG disclosed that the government had directed the affected loan vendors to refund the N1.8 billion, which would be redistributed to the affected civil servants.

He reaffirmed the state government’s commitment to transparency and protection of workers’ welfare, noting that appropriate measures would be taken to prevent a recurrence.