In what can only be described as a damning revelation, a new report from the Auditor-General of the Federation has uncovered a massive scandal involving over N197.72 billion in irregular payments and fraudulent contracts across Nigeria’s ministries, departments, and agencies (MDAs). The shocking findings have sent shockwaves through the corridors of power, as they expose deep-rooted financial mismanagement, rampant corruption, and a blatant disregard for procurement regulations.
The comprehensive audit, spanning activities from 2020 to 2021, reveals systemic lapses that have cost the Nigerian taxpayer billions, with contractors and government officials colluding to siphon off public funds under the guise of bogus contracts. The report, officially titled the Annual Report on Non-Compliance and Internal Control Weaknesses, details brazen violations of Nigeria’s financial regulations and procurement laws—violations that raise serious questions about the integrity of the country’s public sector.
The report’s most chilling discovery is the revelation that a staggering N7.39 billion was paid for contracts awarded through fraudulent means in at least 32 MDAs. These illegal payments were made in direct violation of Paragraph 2921(i) of the Financial Regulations (2009), which mandates transparent, open competitive bidding for all government contracts. Instead, what transpired was a series of backroom deals and shady arrangements, leaving taxpayers on the hook for astronomical sums.
At the heart of this scandal is the Rural Electrification Agency (REA), which alone accounted for a jaw-dropping N2.12 billion in irregular payments. This revelation is particularly troubling given the agency’s mandate to expand access to electricity in rural Nigeria, making this breach of public trust even more egregious. On the other end of the spectrum, the Nigerian Security Printing and Minting Company Plc (NSPM) was found to have committed a relatively minor infraction, with just N11.72 million in irregular payments—an insignificant sum compared to the titanic figures racked up by other agencies.
The scandal does not stop there. The audit also uncovered an appalling N167.59 billion in payments made for contracts that were either never delivered or were only partially completed. This colossal sum, paid for phantom projects, directly violates Paragraph 708 of the Financial Regulations, which prohibits payments for services or goods that have not been provided. The implications of these findings are staggering: entire sectors of the Nigerian economy have been looted, with billions handed out for ghost projects, leaving the country with little to show for it.
Among the worst offenders in this category is the Nigerian Bulk Electricity Trading Plc (NBET), which alone was responsible for an eye-watering N100 billion in unfulfilled contracts. This staggering sum raises serious questions about the effectiveness and accountability of Nigeria’s electricity sector, and further underscores the growing crisis in the country’s public financial management.
For the Nigerian public, this report is a grim reminder of the scale of the corruption that continues to plague the nation’s governance. While some agencies, like the National Centre for Women Development, were found to have committed relatively minor irregularities (N2.17 million), the overall picture is one of widespread abuse, with vast amounts of public funds misappropriated without consequence.
The Auditor-General’s office has called for urgent action to address these breaches, recommending that the Public Accounts Committees of the National Assembly take immediate steps to hold perpetrators accountable and recover the misappropriated funds. But the question on the minds of many Nigerians is: will anything be done, or will this scandal, like so many others before it, be swept under the rug?
The report read, “The sum of N167,592,177,559.40 (one hundred and sixty-seven billion, five hundred and ninety-two million, one hundred and seventy-seven thousand, five hundred and fifty-nine naira, forty kobo) was the amount of payments for jobs/contracts not executed by 31 ministries, departments and agencies.
The Nigerian Bulk Electricity Trading Plc., Abuja, has the highest amount of N100,000,000,000.00 (one hundred billion naira), while the National Centre for Women Development has the least amount of N2,171,766.44 (two million, one hundred and seventy-one thousand, seven hundred and sixty-six naira, forty-four kobo).”
The report also uncovered violations of due process in contract awards amounting to N20.33bn across 24 MDAs.
Section 16(21) of the Public Procurement Act (PPA) 2007 requires strict adherence to procurement plans and mandatory approvals before contract awards. However, the audit found that these requirements were often ignored.
The NSPM in Abuja was responsible for the highest amount of due process violations, totalling N14.14bn, while the Corporate Affairs Commission had the least, at N8.98m.
The report noted, “The sum of N20,334,104,016.27 (twenty billion, three hundred and thirty-four million, one hundred and four thousand, sixteen naira, twenty-seven kobo) was the amount of contracts awarded in violation of due process by 24 ministries, departments and agencies.
“The Nigerian Security Printing and Minting Company Plc Abuja, has the highest amount of N14,136,472,333.16 (fourteen billion, one hundred and thirty-six million, four hundred and seventy-two thousand, three hundred and thirty-three naira, sixteen kobo) while the Corporate Affairs Commission has the least amount of N8,980,603.72 (eight million, nine hundred and eighty thousand, six hundred and three naira, seventy-two kobo).”
Also, a total of N2.41bn was discovered to have been paid for contracts exceeding approved financial thresholds without obtaining the required “Certificate of No Objection” from the Bureau of Public Procurement.
This violation affected five MDAs, with the Ahmadu Bello University Teaching Hospital, Zaria, recording the highest amount at N1.06bn.
The Federal Medical Centre, Bida, recorded the least amount, at N9.9m.
The report read, “The sum of N2,407,710,913.92 (two billion, four hundred and seven million, seven hundred and ten thousand, nine hundred and thirteen naira, ninety-two kobo) was the amount of contracts awarded above the threshold by five ministries, departments and agencies.
“The Ahmadu Bello University Teaching Hospital, Zaria has the highest amount of N1,065,614,232.70 (one billion, sixty-five million, six hundred and fourteen thousand, two hundred and thirty-two naira, seventy kobo) while the Federal Medical Centre, Bida, has the least amount of N9,900,000.00 (nine million, nine hundred thousand naira).”
This report categorised these issues as “cross-cutting”, meaning they were systemic and occurred in at least four MDAs. It criticised the weak internal controls within the MDAs and highlighted the need for stricter enforcement of financial regulations.
The Public Accounts Committees of the National Assembly have been notified of the findings, with recommendations to ensure accountability and prevent recurrence.
Stakeholders across the country are now calling for transparency and accountability in public sector financial dealings, particularly in the wake of these revelations. The extent of the irregularities uncovered in the Auditor-General’s report raises serious questions about the integrity of procurement processes and the management of public funds, with some critics suggesting that these lapses may be indicative of broader systemic issues within the Nigerian government.
Meanwhile, the Centre for Anti-Corruption and Open Leadership has called for a thorough investigation into the alleged misappropriation of N4.64bn by the Ministry of Works and Housing, under the leadership of Babatunde Fashola.
An audit report by the Auditor-General for the Federation had also uncovered financial irregularities totaling over N4.64bn in the Federal Ministry of Works (Housing Sector) between 2020 and 2021.
The report details several issues, including payments made without proper documentation, extra-budgetary expenditures, mobilisation fees exceeding approved thresholds, and contracts awarded without following due process.
The Auditor-General recommended that the Permanent Secretary of the ministry justify the payments, recover the funds, and remit them to the treasury.
The audit report also recommended that evidence of compliance should be submitted to the National Assembly’s Public Accounts Committees, failing which sanctions under Paragraph 3106 of the Financial Regulations should apply.
With the report now in the hands of lawmakers, the public is watching closely. The revelation of such monumental financial mismanagement has sparked a firestorm of outrage across the country. Analysts are calling for a full-scale investigation, with some demanding the resignation of key officials implicated in the scandal. The stakes are high, as the Nigerian government faces growing pressure to prove that it is serious about tackling corruption and ensuring that public funds are used for the benefit of all citizens.
This bombshell report is yet another devastating blow to the Nigerian public’s already fragile trust in its government’s ability to manage public resources responsibly. If reforms are not enacted swiftly, the damage to the nation’s financial credibility may be irreversible. The time for accountability has come—and Nigerians are demanding answers.
Reacting to the report, the Executive Director of CACOL, Debo Adeniran, expressed concern over the findings, describing it as a betrayal of public trust.
Adeniran urged the Economic and Financial Crimes Commission to expedite the investigation into the matter and hold those responsible accountable.
“It is not surprising that such cases of misappropriation, misapplication of funds, outright embezzlement, and other misdemeanor will happen. President Bola Tinubu must not be nepotistic about this revelation.
“This must not be covered up; the government must ensure that justice is done and anybody who is found culpable in the allegations must be punished.
“Further investigation should be carried out and nobody should be bigger than the law; whoever is culpable should be made to face the course of justice,” Adeniran said.
Efforts to get Fashola to respond to the allegations proved unsuccessful, as calls and messages to his number were neither answered nor replied.