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A report by the Auditor-General of the Federation has exposed irregular payments for contracts totalling over N197.72bn across various ministries, departments, and agencies, raising serious concerns about systemic lapses in financial compliance and procurement processes.

The findings, which are detailed in the Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses, cover activities between 2020 and 2021.

They reveal violations of established financial regulations and procurement laws, with irregularities affecting multiple MDAs.

The report was released to assist stakeholders, including the Public Accounts Committees of the National Assembly, in addressing these lapses and recovering the lost funds.

One of the key findings in the report revealed irregularities in the award of contracts totalling N7.39bn.

The breaches occurred in 32 MDAs and contravened Paragraph 2921(i) of the Financial Regulations (2009), which mandates open competitive bidding for all procurement processes.

The Rural Electrification Agency in Abuja recorded the highest irregularity in this category, amounting to N2.12bn, while the Nigerian Security Printing and Minting Company Plc had the least irregularity, at N11.72m.

The audit report read, “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 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 naira).”

Another alarming revelation in the report was the sum of N167.59bn paid for jobs or contracts that were either partially executed or not executed at all.

This contravenes Paragraph 708 of the Financial Regulations, which prohibits payments for services or goods not yet delivered.

The Nigerian Bulk Electricity Trading Plc in Abuja accounted for N100bn of these irregular payments, making it the highest in this category.

The National Centre for Women Development recorded the lowest irregularity at N2.17m.

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.

The Nigerian Senate has raised serious concerns over the Auditor-General’s report, which exposed a staggering misappropriation of N105.6 billion across Ministries, Departments, and Agencies (MDAs).

The upper chamber has promised firm sanctions against erring agencies, emphasising the need for accountability and compliance with legislative directives.

At a legislative oversight workshop in Abuja, Senator Garba Maidoki, Chairman of the Senate Committee on Legislative Compliance, expressed dismay at the financial irregularities.

“We cannot condone such a humongous misappropriation, especially in these critical times. Sanctions will be imposed on MDAs that ignore this report,” Maidoki declared.

The Auditor-General’s report highlighted systemic violations, including N18.36 billion spent on contracts awarded without adherence to the Public Procurement Act. Maidoki criticised agency heads for frequently failing to appear before the Senate to explain their financial dealings, warning, “Firm action will be taken against any agency head who disregards Senate directives.”

Senate President Godswill Akpabio, represented by Deputy Senate President Jibrin Barau, reinforced the Senate’s resolve to uphold legislative compliance.

“Adherence to legislative resolutions is crucial for achieving Nigeria’s development goals and maintaining public trust,” Akpabio remarked.

The workshop, organised by the National Institute for Legislative and Democratic Studies (NILDS) in collaboration with Konrad Adenauer Stiftung (KAS), also featured insights from key stakeholders.

Professor Abubakar Sulaiman, NILDS Director-General, outlined systemic challenges such as weak enforcement, bureaucratic inertia, and insufficient political support. “These issues erode public trust and undermine governance efforts,” Sulaiman cautioned.

The Senate’s Committee on Public Accounts has already initiated an investigation into the reported financial mismanagement.

Acting Clerk to the National Assembly, Mr. Kamoru Ogunlana, stressed the importance of compliance in building public confidence, stating, “For laws to have meaning, there must be consistent and effective compliance with legislative directives.”

As the Senate intensifies its oversight functions, Maidoki reassured the public of its commitment to holding MDAs accountable.

This effort underscores the legislature’s determination to curb corruption, restore trust, and efficiently use public funds for Nigeria’s sustainable development.

Auditor-General

Auditor-General uncovers N197bn contract fraud in MDAs

BREAKING: Senate laments as Auditor-General’s Report Uncovers N105.6bn Fraud in MDAs