The Kwara State Executive Council has approved the recovery of public properties currently under Harmony Holdings and its ailing subsidiaries, citing persistent financial losses, mounting liabilities, and zero returns since 2012.
The resolution was reached at Tuesday’s council meeting in Ilorin, presided over by Governor AbdulRahman AbdulRazaq. The council acted on a briefing from the Commissioner for Finance, Dr. Hauwa Nuru, who detailed the poor financial standing of the holding company and its affiliates.
According to Dr. Nuru, despite several interventions through bailouts, grants, and loans, companies under Harmony Holdings such as Harmony Transport Services, Harmony Insurance Brokers, and Harmony Investment and Property Development Company have remained financially unviable. She noted that only Harmony Securities Limited has shown signs of profitability.
“The state government has repeatedly intervened to keep these companies afloat, but they continue to struggle. Their quick ratios, based on audited financial statements for 2022 and 2023, fall below the industry benchmark of 1:1, indicating their inability to meet short-term obligations,” she said.
Dr. Nuru proposed the dissolution of the companies and the transfer of all public assets in their possession to the Ministry of Finance Incorporated (MOFI), which would manage the assets as a sustainable investment vehicle.
“This strategy is more cost-effective and will help eliminate the ballooning liabilities,” she added.
The council unanimously approved the proposal. The matter is now expected to be presented to the Kwara State House of Assembly for debate and formal ratification.
As part of due diligence, the council was also briefed on the outstanding liabilities of the affected entities.