Former finance minister says data-driven reforms uncovered widespread fraud and inefficiencies, saving billions and reshaping public sector accountability……
Former Minister of Finance, Kemi Adeosun, has shed new light on how the Federal Government uncovered tens of thousands of fraudulent payroll entries, revealing that the integration of the Bank Verification Number (BVN) system led to the discovery of over 45,000 so-called “ghost workers.”
Speaking at the Citadel School of Government Dialogue Series in Lagos, Adeosun explained that the federal payroll long considered the government’s largest recurring expense had been plagued by inefficiencies and abuse that earlier reform efforts failed to resolve.
According to Adeosun, previous attempts to clean up the payroll through biometric verification repeatedly stalled, largely due to resistance from key institutions, including security and paramilitary agencies.
Rather than launching another biometric exercise, her team adopted a different approach leveraging existing data.
“We ran the federal payroll against the BVN database, and the result was staggering,” she said. “We found 45,000 ghost workers.”
The strategy eliminated the need for fresh enrollment, bypassing institutional bottlenecks and exposing inconsistencies directly through financial identity records.
Not Always ‘Ghosts’ But Systemic Failures
Adeosun clarified that the term “ghost worker” often obscures the true nature of the problem.
“In many cases, it wasn’t a ghost at all,” she explained. “You could find one BVN linked to multiple salaries.”
She added that some cases were due to administrative lapses such as deceased or transferred workers still receiving salaries while others reflected deliberate exploitation of weak controls.
“It wasn’t always a cartel. Sometimes it was just inefficiency and gaps in the system,” she noted.
Accountability: The Missing Link
To ensure the reforms were sustainable, Adeosun introduced a critical layer of human accountability alongside the technology.
Permanent Secretaries were required to personally sign off on their ministries’ payrolls effectively tying responsibility to individuals and making it harder to conceal fraudulent entries.
The move created a clear audit trail and reinforced discipline across the system.
Data as a Tool for Governance
Beyond the payroll cleanup, Adeosun used the experience to emphasize the power of data in policymaking.
“If you just shout, you’re just a clanging cymbal,” she said. “But if you come armed with data and evidence, it becomes very difficult for anyone to challenge you.”
She urged current and future leaders to embrace data-driven governance, including emerging tools like artificial intelligence, while maintaining the discipline required to implement reforms effectively.
The event also featured Tunde Bakare and Mike Adebamowo, who echoed the need for innovation and integrity in public service.
Bakare praised Adeosun’s resilience and reputation, noting that her return to public discourse without allegations of corruption reinforced public trust.
Participants at the dialogue agreed that while the discovery of 45,000 ghost workers marked a major milestone, the long-term success of such reforms depends on legal backing and institutional continuity.
The consensus: technology like BVN and AI can expose problems but only strong leadership and enforceable laws can ensure lasting change.
Adeosun’s account offers a powerful reminder that even deeply entrenched inefficiencies can be dismantled not just with policy, but with the smart use of data and the will to act on it.
