Former Minister of Finance Kemi Adeosun has revealed that the integration of the Bank Verification Number (BVN) into Nigeria’s federal payroll system led to the identification and removal of 45,000 fraudulent entries.
Speaking at a public policy dialogue in Lagos, Adeosun said the federal payroll had long been the government’s largest recurrent expense, plagued by inefficiencies and weak verification processes that allowed irregular payments to persist.
She explained that earlier reform efforts relying on biometric data failed to deliver lasting results due to institutional resistance and poor coordination across agencies.
According to her, a more effective approach emerged when the government leveraged the existing BVN database to validate payroll records against a central financial identity system.
By matching payroll data with verified bank-linked identities, the reform exposed widespread duplication and inconsistencies.
In several cases, a single identity was linked to multiple salary payments, while in others, payments continued to be made to individuals no longer in service.
Adeosun noted that the findings challenged the common perception of organised payroll fraud, stating that many of the irregularities stemmed from systemic lapses, outdated records, and weak internal controls rather than sophisticated criminal networks.
To reinforce the reform, accountability measures were introduced across the civil service. Senior administrative officers were required to certify payroll records under their supervision, creating a direct line of responsibility and reducing the likelihood of unchecked anomalies.
She emphasised the role of data-driven governance in achieving the outcome, noting that the use of verifiable financial data provided a more reliable basis for reform compared to previous methods.
The exercise significantly reduced the government’s wage bill and improved transparency within the public financial management system.
Adeosun also urged policymakers to prioritise the use of data and digital tools in public sector reform, noting that effective implementation requires both technical capability and institutional discipline.
The disclosure underscores the broader role of identity-linked financial systems such as the Bank Verification Number in strengthening accountability, reducing leakages, and improving the efficiency of government operations.
