The Kwara State Executive Council has approved the repossession of public properties managed by Harmony Holdings and its struggling subsidiaries, citing over a decade of financial instability, mounting liabilities, and zero returns on investment.
At a meeting chaired by Governor AbdulRahman AbdulRazaq on Tuesday in Ilorin, the council reviewed the poor performance of Harmony Holdings since its inception in 2012. The Commissioner for Finance, Dr. Hauwa Nuru, presented a report detailing the companies’ consistent losses despite multiple financial interventions.
According to Nuru, substantial state funds have been injected into subsidiaries such as Harmony Transport Services, Harmony Insurance Brokers, and Harmony Investment and Property Development Company without any financial return. Only Harmony Securities Limited has shown profitability, she noted.
“The government has repeatedly supported these companies with bailouts, grants, and loans, yet they continue to underperform and are unable to meet basic financial obligations,” she said.
Dr. Nuru cited audited financial statements from 2022 and 2023 which revealed that the companies failed to meet the industry-standard quick ratio of 1:1, highlighting their inability to cover short-term liabilities.
She recommended that the firms be dissolved and their public assets reverted to the Ministry of Finance Incorporated (MOFI), which would manage the properties as part of a long-term investment strategy.
“This move is aimed at reducing liabilities and ensuring more cost-effective, transparent management of public assets,” Nuru added.
The council unanimously endorsed the proposal, which will now be forwarded to the Kwara State House of Assembly for legislative review and ratification.
As part of the process, the council also received detailed reports on the outstanding liabilities of the affected firms.
