Reported by: Ijeoma G | Edited by: Gabriel Osa
The Osun Government has rejected as unfounded and misleading the allegations of a N13 billion payroll scandal levelled against it by auditing firm Sally Tibbot Limited. In a sharply worded rebuttal, the state authorities also accused the firm of attempting to inflate figures and secure an unjust N2 billion commission by wrongly classifying thousands of civil servants and retirees as “ghost workers.”
The dispute stems from an audit engagement between Sally Tibbot Limited and the Osun State Government, in which the firm had been contracted to review and authenticate the government’s payroll records. In a public statement issued recently, the auditing firm claimed it uncovered inconsistencies in the payroll, alleging that as many as 15,000 names on the state’s payroll were invalid or fictitious.
Sally Tibbot Limited asserted that the irregularities amounted to a cumulative N13 billion in unsubstantiated salary payments to purported “ghost workers,” and that the firm was owed a N2 billion performance-based commission for its audit and recoveries. The firm’s position triggered strong reactions from both civil servants and members of the public, raising concerns about the accuracy of personnel records and the integrity of public expenditure management in the state.
However, the Osun State Government has firmly dismissed these claims. In its response, the government described the figure of 15,000 “ghost workers” as exaggerated and materially false. It accused Sally Tibbot Limited of grossly misrepresenting the outcome of the audit to justify earning a commission that was allegedly not contractually agreed or merited.
Government officials said the audit process was conducted in accordance with due administrative and legal processes, and that the state’s payroll system was subject to periodic reviews. They maintained that the purported identification of “ghost workers” by the firm was flawed both in methodology and in interpretation, leading to erroneous conclusions.
In the statement, the state highlighted that any commission payable to service providers engaged in government audits is contingent on strict terms of reference and verification procedures. The government alleged that Sally Tibbot Limited attempted to pivot from its agreed scope, using inflated and unverified figures to pressure the state into paying the disputed commission.
The controversy has become a focal point in debates over public sector payroll management, governance and accountability in Osun State. Civil servants, pensioners and unions have watched developments closely, concerned about the potential ramifications of the claims on salary integrity and retirement benefits. Some groups had expressed anxiety that the allegations, if proven, could lead to widespread disruptions in the civil service payment system.
In its rebuttal, the Osun Government reaffirmed its commitment to transparency and good governance. It assured stakeholders that comprehensive payroll verification mechanisms are in place and that any genuine cases of irregular payments or administrative errors would be addressed through established procedures, not sensationalised claims.
The state warned that should the auditing firm persist in making what it described as false and defamatory allegations, the government would consider legal action to protect its reputation and deter similar conduct by external service providers.
Experts in public administration noted that payroll audits are complex undertakings, often involving cross-checking personnel records, biometric databases, service histories and pension profiles. They emphasised the importance of clear contractual terms, third-party verification and independent oversight to ensure that audit findings are accurate, credible and actionable.
The Osun dispute underscores broader challenges faced by subnational governments in Nigeria as they attempt to modernise payroll systems, eliminate wasteful expenditure, and build public trust in financial management. While technology solutions such as integrated personnel and payroll information systems (IPPIS) have been deployed in some jurisdictions, the effectiveness of such systems can vary depending on implementation quality and data integrity.
As the controversy unfolds, attention will likely turn to how both parties manage the public narrative and whether any further formal inquiries or legal processes are initiated. For now, the Osun State Government’s categorical rejection of the N13 billion allegation represents a firm pushback against the audit firm’s claims and a call for greater clarity and accountability in public sector auditing.
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