A comprehensive report by the Auditor-General of the Federation has uncovered serious financial mismanagement across several Ministries, Departments, and Agencies (MDAs) of the Nigerian government, revealing irregular payments for contracts totaling over N197.72 billion between 2020 and 2021.
These findings, detailed in the Annual Report on Non-Compliance and Internal Control Weaknesses, have raised concerns about systemic lapses in financial compliance, procurement processes, and governance within the country’s public sector.
The report, which spans financial activities from 2020 to 2021, sheds light on widespread violations of established financial regulations and procurement laws, with irregularities spanning multiple MDAs. It highlights significant breaches in the areas of contract award processes, payments for unexecuted jobs, and inadequate internal controls.
These discrepancies have sparked alarm over the effectiveness of financial oversight and procurement regulations in place to safeguard public funds.
One of the most striking findings in the report is the irregular award of contracts amounting to N7.39 billion. The violations, affecting 32 MDAs, contravened Paragraph 2921(i) of the Financial Regulations (2009), which mandates that all procurement processes must undergo open competitive bidding.
This breach of procurement laws was particularly prevalent at the Rural Electrification Agency (REA) in Abuja, which accounted for the largest irregularity in this category, totaling N2.12 billion. In contrast, the Nigerian Security Printing and Minting Company Plc (NSPM) had the smallest irregularity, amounting to just N11.72 million.
The audit report elaborated on these findings, noting that “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 identified as the total value of irregular contract awards.
The report specifically mentioned that the REA’s breach, at N2.12 billion, represented the highest figure among the offending agencies, with the Nigerian Security Printing and Minting Company Plc recording the least at N11.72 million.
The Auditor-General’s report also revealed another disturbing issue: payments totaling N167.59 billion were made for contracts or jobs that were either partially executed or not executed at all.
These payments violate Paragraph 708 of the Financial Regulations, which explicitly prohibits the disbursement of funds for services or goods not yet delivered. The Nigerian Bulk Electricity Trading Plc (NBET), based in Abuja, was found to be responsible for the largest share of these payments, accounting for a staggering N100 billion of the total irregular payments.
Other agencies involved in these irregularities include the National Centre for Women Development, which recorded the lowest such payment at N2.17 million. Overall, the total amount for unexecuted or partially executed contracts stood at 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). The findings suggest that over 31 MDAs were involved in making these improper payments.
These revelations have raised serious concerns among stakeholders, including the Public Accounts Committees of the National Assembly, which have been called upon to investigate these lapses further and work toward recovering the lost funds. The report is seen as an important tool in ensuring accountability, as it provides crucial information to assist lawmakers in addressing these systemic issues within the public sector.
The Auditor-General’s office has called for immediate reforms to address the weaknesses identified in the internal control mechanisms of these agencies and to ensure that such financial irregularities are not repeated in the future. The report also stresses the need for greater adherence to procurement regulations and financial discipline in the management of public funds.
