For years, Niger State has grappled with a shadowy menace draining its coffers: ghost workers and pension fraud. From duplicated BVNs to multiple bank accounts under false identities, these schemes siphoned millions of naira meant for the welfare of the people. But the tide is turning. JUSTINA ASISHANA writes on how the state is uncovering corruption and saving billions using digital public infrastructure.
The integration of digital public infrastructure (DPI) into Niger State governance system has become a beacon of hope in the fight against corruption and inefficiency.
Before now, the state has experienced significant challenges in managing its payroll, with recurring cases of ghost workers, payroll fraud and pension irregularities which drain public resources.
The discrepancies discovered include duplication of bank verification number (BVN), multiple bank accounts number of some members of staff, duplication of civil servant control and identification numbers as well as some names of members of staff appearing in payment vouchers but could not be found in the nominal roll with the office of the Head of Service.
However, through the adoption of digital systems, these challenges are being systematically addressed, saving the state billions of naira thereby enhancing service delivery.
Between 2019 and last year, about 15,000 ghost workers were detected in the Niger State civil service. The workers were usually discovered through committees set up by the state government to screen the workers. The detection became glaring when different names appeared for different banks but with the same BVN.
Before the Central Bank of Nigeria (CBN) introduced the Bank Verification Number (BVN) on February 14, 2014, meant to identify individuals in the Nigerian banking system, the process of identifying individuals was always tedious as the screening was done physically. Then, any name that does not appear before the screening committee would be deemed to be a ghost worker.
During a screening exercise by the state government in 2012, about 3,394 workers did not appear for screening; so they were regarded as ghost workers. Also the duplication of bank accounts was discovered when the same worker appeared under different names.
Unveiling depth of corruption
The extent of corruption in Niger State’s civil service became evident during various payroll verification exercises. In 2020, the Salary Management Committee discovered over 2,000 illegal workers on the government’s payroll.
The committee revealed startling findings that indicated that some employees used duplicate Bank Verification Numbers (BVNs), multiple bank accounts and falsified credentials to draw salaries. These discrepancies cost the state over N672 million monthly, with fictitious allowances and salaries siphoning off funds meant for development projects.
Not only were ghost workers found in the civil service, the government, in 2022, uncovered some ghost pensioners. The then Governor Abubakar Bello revealed that the state government saved over N200 million by uncovering ghost pensioners on its payroll. The government said that it had been trying to resolve the issue of ghost pensioners and other anomalies that have been on ground since 2015.
Recognising the need for systemic change, Niger State turned to DPI as a transformative tool to eliminate inefficiencies. The introduction of biometric verification systems, BVN integration and automated personnel audits has revolutionised payroll management in the state.
By digitising payroll processes, the system reduced manual handling and enabled real-time monitoring of employee records. Linking the payroll system with BVNs and biometric data has been particularly effective in eliminating ghost workers.
In 2023, for instance, the government discovered 200 ghost workers on its payroll, saving over ₦200 million.
Governor Muhammad Umar Bago’s administration has continued this drive, using technology to close loopholes and minimise financial leakages. The integration of DPI has ensured that only verified employees and pensioners receive payments, while discrepancies such as duplicated BVNs and unqualified personnel are promptly addressed.
Saving public funds and improving efficiency
The impact of DPI in Niger State extends beyond combating corruption; it has also improved the efficiency of service delivery. The state now spends less on payroll, freeing up resources for critical sectors such as healthcare, education and infrastructure.
The State Commissioner for Finance, Malam Lawal Maikano, last year, explained that the government has succeeded in discovering ghost workers and ghost pensioners as a result of the technology implemented by the present administration to scrutinise the state civil service to ascertain the authenticity of number of the state workforce and pensioners.
He said the Governor Muhammad Umar Bago administration is resolute in closing all loopholes and leakages for better results.
“Subsequent to a verification exercise conducted by a committee set up by the Niger State Government, it was discovered that some of the civil servants collect double salaries while further investigations revealed that those whose names appeared in the payment vouchers are not in the nominal roll of the state government. Millions of naira was also traced to fictitious salary earners in the civil service.
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“During the screening, we discovered different serial numbers with the same BVN, repeated names with different bank accounts and fictitious allowances and salaries. However, through the adoption of digital systems, these challenges are being systematically addressed, saving the state billions of naira and enhancing service delivery,” Maikano said.
Continuing, he said the government has also introduced digital tools to streamline pension management. The “I’m Alive” biometric verification exercise for pensioners, launched this year, ensures that only eligible retirees receive pensions.
For the “I’M ALIVE” verification exercise, the Director-General of the state Pension Board said that all the retirees have to do is to go to any commercial bank of their choice in the country, “just walk in and tell them you want to be captured for biometric capturing and thumb printing for the “I’M ALIVE” verification and you will be captured and a slip will be given to you as a prove.”
For any pensioner who refused to be captured would not be paid his/her monthly pension, the D-G said. This initiative not only curbs fraudulent claims but also addresses anomalies in pension payments such as overpayments and underpayments.
The Director-General of the Board, Malam Nasiru Saidu Namaska told The Nation that the state Pension Board has digitised all its processes to make them easy and streamline them to eradicate corruption.
“Niger has digitised each and every process in the pension board, not only the verification of pensioners. Now, even the computation of retirement benefits has been digitised and automated. So, you can see that everything about the pension board is being automated. Even the payroll has been generated by the digitised system and also the Niger State Pension Administration System (NPAS).
“We now have the biometric of every retiree in the state and their address and anything you can think of. We have their facials, their account details and their BVNs,” he said.
Namaska said that payments have begun for everyone who has been captured, disclosing that during the screening of the pensioners, those who are not genuine pensioners are not captured on our database.
He further stated that some of the pensioners have died but their relatives have refused to inform the Pension Board as they want to continue to receive the monthly pension, even as he added that the “I’m Alive” verification will verify who is alive or dead. The digital system has helped the government to save some money. It has reduced the monthly pension liability of the government.
According to the D-G, a lot of people do not turn up for the screening as some of the next of kin of the dead pensioners believe that if they do not appear, they will keep receiving the money paid as pension because they have access to the ATM cards and phone numbers of the dead pensioners.
“So, because of their non-appearance, we have to stop the payment of their monthly pensions. We have now opened a new portal for verification of those who are dead. We have asked them to come forward and officially write an application for conversion from retirement to dead gratuity and we have criteria. They are to bring certain documents which will enable the board to know when the retirees die, how long the relatives have been collecting the monthly pension up to the day that they appear for the verification exercise.
“The documents required include the statement of account of the retiree, death certificate; letter of first appointment and notification of retirement. We are not asking for BVN because it is not possible to have access to BVN of somebody that has died,” he said.
Challenges and opportunities
Despite these successes, the transition to DPI has not been without some challenges. One of such challenges is data discrepancies due to inconsistent data entry, resistance from stakeholders accustomed to opaque systems and unwilling to transit to a transparent system.
In addition, the lack of integration with national identification systems such as the National Identification Number (NIN) limits the full potential of the DPI.
Nevertheless, the potential benefits of scaling up digital solutions are immense. For every ghost worker or pensioner eliminated, the government saves approximately N1 million annually. Expanding the use of DPI across all sectors could save trillions of naira over time, fostering sustainable development and boosting public confidence in governance.
A vision for the future
Niger State’s experience demonstrates the transformative power of digital public infrastructure in fostering transparency, reducing corruption and improving efficiency. By leveraging technology, the state is setting a precedent for other regions to follow.
For Niger State, the journey towards a corruption-free and efficient civil service is far from over, but the foundation laid by the DPI offers a promising path forward.
In the words of Engineer Ibrahim Panti, the Chairman of the Salary Management Committee in 2022, “With digital systems in place, we are not just saving money; we are restoring public trust and ensuring that government resources are used for the benefit of the people.”
- This report is produced under the DPI Africa Journalism Fellowship Programme of the Media Foundation for West Africa and Co-Develop.
