The Office of Nigeria’s Auditor-General of the Federation has exposed alarming financial irregularities amounting to ₦197.72 billion across several ministries, departments, and agencies (MDAs) between 2020 and 2021. The findings, revealed in the Annual Report on Non-Compliance and Internal Control Weaknesses, highlight breaches of financial regulations and procurement laws, including irregular contract payments and instances where payments were made for partially executed or unexecuted jobs.
Breakdown of Findings
- Irregular Contract Payments
A total of ₦7.39 billion was flagged as irregularities in the awarding of contracts by 32 MDAs. The Rural Electrification Agency (REA) accounted for the largest portion, with ₦2.12 billion, while the Nigerian Security Printing and Minting Company (NSPM) recorded the smallest amount at ₦11.7 million.- REA: ₦2.12 billion
- NSPM: ₦11.7 million
- Payments for Unexecuted or Partially Executed Contracts
Violating Paragraph 708 of the Financial Regulations, ₦167.59 billion was reportedly disbursed for contracts that were either partially executed or not executed at all.- Nigerian Bulk Electricity Trading Plc (NBET): Topped the list with ₦100 billion in irregular payments.
- National Centre for Women Development: The lowest at ₦2.17 million.
- Violations of Procurement Due Process
Contracts worth ₦20.33 billion were awarded without adhering to provisions of the Public Procurement Act (PPA) 2007, which mandates procurement planning and necessary approvals before awards.- NSPM: The highest violator, with ₦14.14 billion.
- Corporate Affairs Commission (CAC): The least, at ₦8.98 million.
Highlight of Key Violations
- NBET Irregularities: As a key player in Nigeria’s power sector, NBET accounted for ₦100 billion in payments for unexecuted contracts, raising serious concerns about transparency in the sector.
- NSPM’s Breach of Due Process: NSPM, a subsidiary of the Central Bank of Nigeria, was responsible for ₦14.14 billion of the procurement violations.
Corruption: A Persistent Problem
This report adds to Nigeria’s ongoing challenges with financial corruption. According to a July 2024 report by the National Bureau of Statistics (NBS), Nigerians paid a staggering ₦721 billion in bribes to public officials in 2023 alone, underscoring the systemic nature of the problem.
Call for Accountability
The Auditor-General’s revelations have once again spotlighted the urgent need for strict enforcement of financial regulations and procurement laws to curb corruption and ensure public funds are judiciously utilized. The report calls on relevant authorities to take immediate action against erring officials and agencies to safeguard public resources.
