Audit Reveals Over N197bn In Contract Irregularities Across MDAs
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The Auditor-General of the Federation has uncovered a staggering N197.72 billion in irregular payments for contracts across various ministries, departments, and agencies (MDAs), revealing systemic issues in Nigeria’s financial management and procurement processes.
The findings, published in the Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses, cover the period between 2020 and 2021 and highlight significant lapses in adhering to established financial regulations.
Among the key findings, the report revealed N7.39 billion in contract awards where open competitive bidding was bypassed, violating Paragraph 2921(i) of the Financial Regulations (2009).
The Rural Electrification Agency in Abuja was the worst offender, responsible for N2.12 billion of the irregularities.
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Another troubling discovery was the sum of N167.59 billion paid for contracts that were either partially or not executed at all, violating Paragraph 708 of the Financial Regulations.
The Nigerian Bulk Electricity Trading Plc accounted for a large portion of these fraudulent payments, with N100 billion alone attributed to the agency.
The report also flagged N20.33 billion in contracts awarded without following due process, in violation of the Public Procurement Act (PPA) 2007, as well as N2.41 billion paid for contracts exceeding approved financial thresholds without the required Certificate of No Objection from the Bureau of Public Procurement.
The Auditor-General’s report criticized the weak internal controls within the MDAs and called for stronger enforcement of financial regulations to prevent such breaches in the future. It also stressed the need for accountability and recovery of the misappropriated funds.
In response to the findings, the Centre for Anti-Corruption and Open Leadership (CACOL) demanded a full investigation into the alleged mismanagement of funds, particularly highlighting irregularities in the Ministry of Works and Housing, which involved over N4.64 billion in misappropriations.
Debo Adeniran, the Executive Director of CACOL, called for swift action against those responsible, urging that no one be allowed to escape justice.
He emphasized the need for President Bola Tinubu’s government to address the issue decisively.
The revelations have intensified calls for reform in the management of public finances, as Nigeria struggles with economic challenges, including rising debt and inflation.
The Auditor-General’s report has been sent to the National Assembly’s Public Accounts Committees for further action.
