The Kwara State government has shut down Harmony Holdings and ordered the return of all public assets under its control.

The government cited over a decade of losses, mounting liabilities, and zero returns on public investments.

The decision was reached during the State Executive Council meeting chaired by Governor AbdulRahman AbdulRazaq in Ilorin.

According to the Commissioner for Finance, Dr. Hauwa Nuru, who briefed the council, Harmony Holdings and several of its subsidiaries have failed to fulfill their core mandate since their creation in 2012.

She said this is despite multiple bailouts, grants, and loans from the state government.

According to her, “These entities have consistently recorded financial losses. Public funds were pumped in repeatedly to keep them afloat, yet there has been no return on investment”.

Nuru listed Harmony Transport Services, Harmony Insurance Brokers, and Harmony Investment and Property Development Company as among the non-performing subsidiaries.

She noted that only Harmony Securities Limited showed any sign of profitability, while the rest remained a drain on state resources.

“The quick ratio analysis of their 2022 and 2023 audited financials falls below the industry standard of 1:1, which clearly indicates these companies are not in a strong enough position to meet their short-term obligations,” she added.

She recommended the immediate dissolution of the affected firms and the reversion of all assets in their care to the Ministry of Finance Incorporated, which will now serve as the official investment vehicle for managing the state’s interests.

“This move will cut costs, eliminate liabilities, and ensure better oversight in line with due process,” she said.

The council approved the proposal, which is to be forwarded to the Kwara State House of Assembly for legislative endorsement.

Also presented at the meeting was a breakdown of outstanding debts and obligations owed by the companies as part of ongoing financial reforms.