• Home
  • Anti-Corruption
  • Fact-Check
  • Economy
  • National
  • Security
  • Features
  • State
  • Event
  • E-Book
Search
  • Home
  • About
  • Adverts
  • Contact
Sign in
Welcome! Log into your account
Forgot your password? Get help
Password recovery
Recover your password
A password will be e-mailed to you.
PRNIGERIA PRNigeria News
PRNIGERIA PRNIGERIA
  • Home
  • Anti-Corruption
  • Fact-Check
  • Economy
  • National
  • Security
  • Features
  • State
  • Event
  • E-Book
Home Anti-Corruption FG uncovers N197bn contract fraud across MDAs for 2 years
  • Anti-Corruption
  • Economy
  • National

FG uncovers N197bn contract fraud across MDAs for 2 years

By
Prnigeria
-
November 24, 2024
office of the Auditor General for the Federation, photo Credit: Google
office of the Auditor General for the Federation, photo Credit: Google

FG uncovers N197bn contract fraud across MDAs for 2 years

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).”

Read Also:

  • Nigerian Army Denies Losing Weapons to Bandits in Kwara Operation
  • Uba Sani Releases ₦2.3bn for Retirees and Families of Deceased Workers
  • Group Urges CBN to Scrap 2% Service Charge on Hajj Fare to Reduce Pilgrimage Cost

 

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.

 

This violation affected five MDAs, with the Ahmadu Bello University Teaching Hospital, Zaria, recording the highest amount at N1.06bn.

 

The Federal Medical Centre, Bida, recorded the least amount, at N9.9m.

 

The report read, “The sum of N2,407,710,913.92 (two billion, four hundred and seven million, seven hundred and ten thousand, nine hundred and thirteen naira, ninety-two kobo) was the amount of contracts awarded above the threshold by five ministries, departments and agencies.

 

“The Ahmadu Bello University Teaching Hospital, Zaria has the highest amount of N1,065,614,232.70 (one billion, sixty-five million, six hundred and fourteen thousand, two hundred and thirty-two naira, seventy kobo) while the Federal Medical Centre, Bida, has the least amount of N9,900,000.00 (nine million, nine hundred thousand naira).”

 

This report categorised these issues as “cross-cutting”, meaning they were systemic and occurred in at least four MDAs.

 

It criticised the weak internal controls within the MDAs and highlighted the need for stricter enforcement of financial regulations.

The Public Accounts Committees of the National Assembly have been notified of the findings, with recommendations to ensure accountability and prevent recurrence.

 

The revelations have sparked concerns about the government’s ability to manage public funds efficiently, particularly at a time when Nigeria is grappling with economic challenges such as inflation and rising debt.

 

The audit findings highlight the urgent need for reforms to restore public confidence in the country’s financial management system.

VISIT OUR OTHER WEBSITES
PRNigeria.com EconomicConfidential.com PRNigeria.com/Hausa/
EmergencyDigest.com PoliticsDigest.ng TechDigest.ng
HealthDigest.ng SpokesPersonsdigest.com TeensDigest.ng
ArewaAgenda.com Hausa.ArewaAgenda.com YAShuaib.com
  • TAGS
  • Contract
  • Corruption
  • Fraud
  • MDAs
Previous articleAgain, Northern Elders Reject Tax Reform Bills
Next articleFG promotes 332 civil servants to directors in MDAs
Prnigeria
Prnigeria

RELATED ARTICLESMORE FROM AUTHOR

Hajj Exercise Around Ka'abah

Group Urges CBN to Scrap 2% Service Charge on Hajj Fare to Reduce Pilgrimage Cost

NDLEA Logo

NDLEA Dismantles Cocaine Cartels Behind UK Shipments, Arrests Suspects, Destroys 25,000kg Skunk Nationwide

ACF

ACF Warns of Alleged Plot to Cripple Dangote Refinery, Urges FG Intervention

GWA Award Winners 2025

PHOTOS: Nigeria Customs, IMPR Bag Back-to-Back Golden World Award at IPRA 70th Anniversary

Troops Nab Terrorists’ Logistics, Drug Suppliers in Borno

S/Arabia-Trained Graduates to Begin Forum on Sustainable Development

Over 100 Jerrycans of Petrol Seized as Police Foil Smuggling to Niger Republic

Inspector-General of Police Kayode Adeolu Egbetokun

STEP-BY-STEP: How to Apply for New Digital Tinted Glass Permit as Police Begin Enforcement

Nigerian Army

Military Arrests 16 Officers Over Indiscipline, Breach of Service Rules

DG NITDA Mallam Inuwa Kashifu and ICPC Chairman Dr. Musa Adamu Aliyu

NITDA, ICPC Form Joint Task Force to Combat Corruption in Government IT Projects

National Disunity Fuels Insurgency, Says Ex-NSA Monguno

Obasanjo Calls for Collective Strategy to Defeat Boko Haram, Tackle Insecurity

Recent Posts

  • Nigerian Army Denies Losing Weapons to Bandits in Kwara Operation
  • Uba Sani Releases ₦2.3bn for Retirees and Families of Deceased Workers
  • Group Urges CBN to Scrap 2% Service Charge on Hajj Fare to Reduce Pilgrimage Cost
  • NDLEA Dismantles Cocaine Cartels Behind UK Shipments, Arrests Suspects, Destroys 25,000kg Skunk Nationwide
  • Kano Gov’t Investigates Alleged Diversion of N4bn Dala Inland Dry Port Funds
  • Home
  • About
  • Adverts
  • Contact
© 2020 PRNigeria. All Rights Reserved.
Latest News
Nigerian Army Denies Losing Weapons to Bandits in Kwara OperationUba Sani Releases ₦2.3bn for Retirees and Families of Deceased WorkersGroup Urges CBN to Scrap 2% Service Charge on Hajj Fare to Reduce Pilgrimage CostNDLEA Dismantles Cocaine Cartels Behind UK Shipments, Arrests Suspects, Destroys 25,000kg Skunk NationwideKano Gov't Investigates Alleged Diversion of N4bn Dala Inland Dry Port FundsACF Warns of Alleged Plot to Cripple Dangote Refinery, Urges FG InterventionTroops Neutralise Terrorists, Repel Boko Haram Attack in BornoPHOTOS: Nigeria Customs, IMPR Bag Back-to-Back Golden World Award at IPRA 70th AnniversaryTroops Nab Terrorists’ Logistics, Drug Suppliers in BornoS/Arabia-Trained Graduates to Begin Forum on Sustainable DevelopmentChristian Genocide and the Conspiracy against Nigeria By Femi Fani-KayodeWe Arrested 450 Terrorists, Rescued 180 Abducted Victims in One Month - MilitaryOver 100 Jerrycans of Petrol Seized as Police Foil Smuggling to Niger RepublicNAFDAC Seals Chinese Supermarkets, Cosmetics Shops in AbujaMining Marshals Arrests 5 Illegal Miners in Niger, Seize Logistics
X whatsapp