The Office of Nigeria’s Auditor-General of the Federation has reported some irregular contract payments totaling N197.72 billion across various agencies, including the Nigerian Bulk Electricity Trading Plc (NBET), a subsidiary of the Central Bank of Nigeria (CBN), Rural Electrification Agency (REA), the Nigerian Security Printing and Minting Company (NSPMC), as well as other ministries, departments, and agencies (MDAs) in the country.
The details of the irregularities in contract payments were contained in the Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses, covering activities between 2020 and 2021.
The report listed some of the violations as including irregular payment for contracts, and payment for jobs partially executed or not executed at all, contrary to the provisions of the nation’s financial regulations and procurement laws.
According to the figures in the report, the most worrisome fraud in the sharp practices by the management of the affected MDAs was the sum of N167.59 billion paid for jobs or contracts that were either partially executed or not executed at all in contravention of Paragraph 708 of the Financial Regulations, which prohibited payments for services or goods not yet delivered.
On the total sum of N7.386 billion of irregularities in the award of contracts by 32 MDAs, the REA topped the fiscal abuse chart with N2.12 billion while NSPM reportedly paid the least sum of N11.7 million for such phony contracts.
The report partly reads: “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 kobos) was the number of irregularities in the award of contracts by 32 ministries, departments and agencies.
“The Rural Electrification Agency, Abuja, has the highest amount of N2,117,143,168.09 (two billion, one hundred and seventeen million, one hundred and three thousand, one hundred and sixty-eight naira, nine kobo), while the Nigerian Security Printing and Minting Company Plc (NSPM) has the least amount of N11,720,000 (Eleven million, seven hundred and twenty thousand.
“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 kobos) was the number 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 added.
Also, the report also uncovered violations of due process in contract awards amounting to N20.33 billion across 24 MDAs contrary to the provisions of Section 16(21) of the Public Procurement Act (PPA) 2007 which requires strict adherence to procurement plans and mandatory approvals before contract awards.
The report further reflected that NSPM, a subsidiary of CBN was responsible for the highest amount of due process violations, totaling N14.14 billion, while the Corporate Affairs Commission (CAC) had the least, at N8.98 million.
According to the AuGF report, “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 number 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 kobos) 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)”, it added.
It would be recalled that in July this year, the National Bureau of Statistics’ Corruption Survey report indicated that Nigerians paid N721 billion as bribes to public officials in 2023.
