NIGPOST: Auditor-General Exposes N197bn Contract Fraud Across MDAs
A recent report from the Auditor-General of the Federation has uncovered significant financial irregularities in Nigeria’s Ministries, Departments, and Agencies (MDAs), revealing over N197.72 billion lost to fraudulent contract awards, partial executions, and outright violations of procurement laws.
The findings, detailed in the Annual Report on Non-Compliance and Internal Control Weaknesses, highlight a widespread failure in adhering to financial regulations and procurement standards between 2020 and 2021.
Key findings:
1. Irregular Contract Awards:
Contracts worth N7.39 billion were awarded without open competitive bidding, as required by Paragraph 2921(i) of the Financial Regulations (2009).
The Rural Electrification Agency in Abuja topped this category with irregularities of N2.12 billion.
The Nigerian Security Printing and Minting Company Plc recorded the least irregularity at N11.72 million.
2. Non-Executed and Partially Executed Contracts:
Payments totaling N167.59 billion were made for contracts either partially completed or not executed at all, violating Paragraph 708 of the Financial Regulations.
The Nigerian Bulk Electricity Trading Plc in Abuja accounted for a staggering N100 billion in this category.
The National Centre for Women Development recorded the smallest irregularity at N2.17 million.
3. Due Process Violations:
Contracts worth N20.33 billion were awarded without adhering to due process as mandated by the Public Procurement Act (2007).
The Nigerian Security Printing and Minting Company had the highest violation at N14.14 billion, while the Corporate Affairs Commission had the least at N8.98 million.
4. Exceeding Financial Thresholds:
Contracts worth N2.41 billion exceeded approved financial thresholds without obtaining the necessary “Certificate of No Objection” from the Bureau of Public Procurement.
The Ahmadu Bello University Teaching Hospital, Zaria, led this category with irregularities totaling N1.06 billion.
The Federal Medical Centre, Bida, recorded the least, at N9.9 million.
Systemic Failures and Recommendations
The Auditor-General labeled these issues as “cross-cutting,” emphasizing that they span multiple MDAs due to weak internal controls.
The report called for urgent reforms to strengthen financial oversight and ensure compliance with established regulations.
CACOL’s Reaction
The Centre for Anti-Corruption and Open Leadership (CACOL) has demanded a thorough probe into the alleged financial misconduct, particularly targeting the Federal Ministry of Works and Housing, where N4.64 billion in irregularities were uncovered.
CACOL’s Executive Director, Debo Adeniran, urged the Economic and Financial Crimes Commission (EFCC) to ensure justice, stressing that no individual should escape accountability.
Public Outcry
The revelations come at a time of economic strain for Nigeria, with rising inflation and mounting debt.
Citizens are questioning the government’s ability to manage public funds effectively and demanding accountability from those involved.
NIGPOST will continue to monitor and provide updates on this developing story.
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