The Kwara State Education Trust Fund (KSETF) has posted a surplus of ₦54.75 million in its 2024 financial year, driven by a ₦100 million grant from the state government. This was revealed in the audited financial statements for the year ended 31 December 2024, obtained by The Nigeria Education News.
Despite the surplus, the Fund’s auditors, Taju Audu & Co., issued a qualified opinion, citing the failure of the Trust to maintain basic financial records such as journals, ledgers, or trial balances raising concerns about transparency and compliance.
Key Financial Highlights
According to the statement signed by the Executive Secretary, Ms. Amolegbe Oluwadamilola Fatima, and Board Chairman, Mr. Abdulwahab Ademola Lawal, the Fund recorded total earnings of ₦100.001 million, made up of the state government grant and a modest ₦1,478 from other income sources (Paystack).
Expenditures stood at ₦45.25 million, covering staff salaries, health insurance, audit fees, publicity, travel, and board meetings. Staff costs alone amounted to ₦28.1 million, accounting for more than 60% of operating expenses.
The Trust also invested ₦2.49 million in new office furniture and equipment. The total bank and cash balance as of year-end was ₦50.2 million.
Value Added Statement
The Fund’s operations created a value of ₦82.88 million, of which:
34% (₦28.12 million) went to employee compensation,
0.01% (₦13,992) was used to replace property and equipment, and
66% (₦54.75 million) was retained as reserves.
Audit Findings and Governance Concerns
While the financial performance appears healthy on the surface, the independent auditor raised red flags about compliance.
“The Fund did not maintain proper accounting records as required by the Companies and Allied Matters Act (CAMA) 2020,” the auditors wrote. “Specifically, the Fund did not maintain journals, ledgers, or trial balances.”
However, they clarified that sufficient audit evidence was obtained through alternative procedures and document testing.
Moreover, the auditors noted the Fund’s non-compliance with the Pensions Reform Act 2014, but acknowledged that steps were being taken to address this.
Accountability and Oversight
The financial statements reflect no reportable irregularities under the Money Laundering (Prevention and Prohibition) Act, 2022. Additionally, trustees reported no conflicts of interest or transactions requiring disclosure.
Notably, no disabled persons were employed during the reporting year, although the Fund claims to consider applications without discrimination.
About the Fund
Established by law in 2021 and amended in 2023, the Kwara State Education Trust Fund was set up to provide sustainable financing for education in the state. Its focus areas include infrastructure development, scholarship funding, and educational program support.
The Board comprises nine members, including education professionals and civil society representatives. Its secretariat is located at No. 10 Ahmadu Bello Way, Ilorin.
What Next?
Despite commendable fiscal discipline in expenditure and asset acquisition, the lack of basic bookkeeping undermines public trust in the institution’s governance. Stakeholders may now look to the government and the Board of Trustees to urgently strengthen the Fund’s internal controls and ensure strict compliance with national financial laws.
As education financing gains momentum across Nigeria, especially at sub-national levels, how Kwara State manages this Trust Fund will likely influence donor confidence and long-term sustainability.
