A recent audit report by the Auditor-General of the Federation has revealed substantial financial discrepancies amounting to over 197.72 billion Nigerian Naira across various government entities, including ministries, departments, and agencies (MDAs).
The report, which highlights systemic lapses in financial compliance and procurement processes, focuses on activities between 2020 and 2021.
Auditor-General Discovered N197bn Contract Fraud In MDAs
The findings are detailed in the Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses and aim to assist stakeholders, including the National Assembly’s Public Accounts Committees, in addressing the identified lapses and recovering lost funds.
One of the key revelations involves irregularities in the award of contracts amounting to N7.39 billion across 32 MDAs. These breaches contravened Paragraph 2921(i) of the Financial Regulations (2009), which mandates open competitive bidding for all procurement processes.
“The sum of N7,386,551,051.09 (seven billion, three hundred and eighty-six million, five hundred and fifty-one thousand, fifty-one naira, nine kobo) was the amount of irregularities in the award of contracts by 32 ministries, departments, and agencies,” the report stated.
The Rural Electrification Agency, Abuja, recorded the highest irregularity in this category, amounting to N2.12 billion, while the Nigerian Security Printing and Minting Company (NSPM) accounted for the lowest irregularity, at N11.72 million.
Another major finding was the payment of N167.59 billion for jobs or contracts that were either partially executed or not executed at all, violating Paragraph 708 of the Financial Regulations.
“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 report noted.
The Nigerian Bulk Electricity Trading Plc, Abuja, accounted for the highest irregular payment at N100 billion, while the National Centre for Women Development recorded the least irregularity at N2.17 million.
Violations of due process in contract awards were also highlighted, totaling N20.33 billion 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 report found these requirements were often ignored.
“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,” it read.
The NSPM, Abuja, accounted for the highest amount of violations in this category, totaling N14.14 billion, while the Corporate Affairs Commission recorded the least, at N8.98 million.
Additionally, contracts worth N2.41 billion were awarded above approved financial thresholds without obtaining the required “Certificate of No Objection” from the Bureau of Public Procurement.
“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 report added.
The Ahmadu Bello University Teaching Hospital, Zaria, recorded the highest amount of violations in this category at N1.06 billion, while the Federal Medical Centre, Bida, accounted for the least amount, at N9.9 million.
The report categorised these issues as “cross-cutting,” indicating systemic flaws across multiple MDAs. It criticised weak internal controls within the agencies and called for stricter enforcement of financial regulations to prevent future occurrences.
The revelations have raised concerns about the government’s ability to manage public funds efficiently, especially amid economic challenges such as inflation and rising debt.
In response to the report, the Centre for Anti-Corruption and Open Leadership (CACOL) has demanded a thorough investigation into alleged misappropriation of N4.64 billion by the Ministry of Works and Housing, under the leadership of Babatunde Fashola.
The Auditor-General’s report identified financial irregularities in the housing sector between 2020 and 2021, including payments made without proper documentation, extra-budgetary expenditures, mobilisation fees exceeding approved thresholds, and contracts awarded without following due process.
These findings underscore the urgent need for reforms to restore public confidence in Nigeria’s financial management system and ensure accountability for public funds.
