In a shocking revelation that has sent ripples through the state’s financial ecosystem, Kano State has uncovered a massive fraudulent scheme where billions of naira meant for the state’s Internally Generated Revenue (IGR) were illegally siphoned into private accounts. This discovery, exposed by the state’s Internal Revenue Service (KIRS), has cast a long shadow over the handling of public funds prior to the recent restructuring of the service under new leadership.
At the heart of the discovery is a complex web of private accounts, fraudulently opened and maintained by individuals entrusted with public revenue. These illicit accounts were used to divert funds that should have been channeled back into the state’s coffers, depriving the government of crucial resources that could have been used for infrastructure, health, education, and other critical services for the people of Kano.
Dr. Zaid Abubakar, the Executive Chairman of the Kano Internal Revenue Service, broke the news during the Annual Performance Review for 2024 and the Strategic Planning session for 2025. Speaking candidly, Abubakar revealed that the fraudulent activities went unchecked for years, under the management of individuals whose actions incapacitated the state’s ability to effectively compete with other states in revenue generation.
“It is a sad and disheartening truth that before our intervention, the management of Kano’s IGR was so badly mismanaged that the state was unable to maximize its potential revenue, despite having one of the largest populations in the country,” Abubakar lamented. He expressed concern over the scale of the misappropriation, revealing that billions of naira had been illegally diverted through these private accounts, but declined to reveal the exact figure or the names of the responsible agents.
Despite the lack of specific details on the scale of the fraud, the impact of the discovery cannot be overstated. These funds, which could have been used to improve public infrastructure, create jobs, and provide social services, were instead funneled into private hands.
To prevent a recurrence of such gross mismanagement, Dr. Abubakar and his team have introduced new measures designed to ensure greater transparency and accountability in the management of Kano’s internal revenue. One of the most notable changes is the establishment of a centralized revenue account. This move, according to Abubakar, is aimed at reducing opportunities for corruption and ensuring that every kobo generated by the state’s tax system is properly accounted for.
“We have put in place a central revenue account that will ensure every penny collected is properly documented and accounted for. This is one of the critical strategies we are implementing to block any possible leakages or fraudulent activities in the future,” Abubakar stated.
The new leadership of KIRS has expressed hope that the measures will lead to a significant boost in revenue generation for the state. Abubakar revealed that with the leakages now plugged, the agency is optimistic about surpassing its N70 billion target for IGR in the 2025 fiscal year, with a new target of over N100 billion.
“Despite the historical challenges, I am confident that we can achieve more than N100 billion in IGR next year,” Abubakar said. “The state has immense untapped potential. With proper management, we can transform Kano into a model state in revenue generation.”
Governor Abba Kabir Yusuf has been supportive of the reforms being implemented by the revenue service, and according to Abubakar, the governor has authorized a review of the state’s tax laws. This review is expected to further enhance the state’s capacity to generate revenue, improve the efficiency of tax collection, and ensure that the system is transparent and fair.
“We are grateful for the continued support of Governor Yusuf,” Abubakar continued. “His administration’s cooperation has been vital in ensuring that these changes are implemented effectively and that the people of Kano benefit from a better-managed revenue system.”
In addition to the centralization of revenue collection, Abubakar also announced a new initiative to engage taxpayers directly. This effort, he explained, would help raise awareness of the services provided by the revenue service and foster better compliance with tax laws.
“We are making strides in educating our taxpayers and ensuring that they are fully aware of their responsibilities,” Abubakar noted. “This will not only increase compliance but also ensure that all revenue is collected in a fair and transparent manner.”
As part of the ongoing efforts to boost the state’s revenue generation, Ibrahim Barde, the Special Adviser on Revenue to the governor, also weighed in on the challenges facing the system. Barde suggested that the state government is considering extending its tax base to include agricultural produce, an area that could significantly increase revenue generation, considering the importance of agriculture in Kano’s economy.
“The state government is seriously exploring the possibility of tapping into the agricultural sector for tax revenue,” Barde said. “This is a sector that has enormous potential, and we believe that through proper tax policies, we can unlock new sources of revenue that will contribute to the growth and development of Kano.”
The scandal has raised questions about the effectiveness of the state’s previous revenue management systems, particularly in light of Kano’s high population and its status as one of Nigeria’s largest and most economically significant states. While the current leadership of KIRS has made significant strides in plugging the leakages and putting in place stronger safeguards, the damage caused by years of mismanagement is difficult to undo.
Kano’s residents are now looking toward the future, hoping that the reforms in place will lead to a more transparent, accountable, and efficient system that benefits all the people of the state. As the government works to revamp the state’s tax laws and improve engagement with taxpayers, the specter of fraud and corruption looms large. However, the hope is that with continued political will, sustained reforms, and a clear focus on accountability, the future of Kano’s IGR will be more secure and prosperous.
