The Office of Nigeria’s Auditor-General has uncovered irregular payments totaling ₦197.72 billion related to contracts in various government agencies, including the Rural Electrification Agency (REA), Nigerian Bulk Electricity Trading Plc (NBET), a subsidiary of the Central Bank of Nigeria, and the Nigerian Security Printing and Minting Company (NSPMC), as well as other ministries, departments, and agencies (MDAs) across the country.
These findings, detailed in the Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses for the 2020-2021 period, highlight several violations, including improper payments for contracts, and payments made for projects that were either partially executed or not executed at all—contrary to Nigeria’s financial regulations and procurement laws.
The report shows that ₦7.39 billion in irregularities were discovered in contract awards by 32 MDAs. The REA topped the list with ₦2.12 billion in irregular payments, while the NSPMC recorded the least at ₦11.7 million.
The most concerning revelation in the report was the discovery that ₦167.59 billion was paid for jobs or contracts that were either not executed or partially completed, violating Paragraph 708 of the Financial Regulations, which forbids payments for undelivered goods or services. Of this sum, NBET accounted for ₦100 billion, making it the highest contributor to this category, while the National Centre for Women Development had the lowest irregularity at ₦2.17 million.
Furthermore, the report uncovered violations of due process in contract awards amounting to ₦20.33 billion across 24 MDAs, contravening Section 16(21) of the Public Procurement Act (PPA) 2007. This section mandates that procurement plans and approvals be adhered to before awarding contracts. The NSPMC, a subsidiary of the CBN, was found responsible for the highest violations in this category, totaling ₦14.14 billion, while the Corporate Affairs Commission had the least, with ₦8.98 million.
Financial mismanagement and corruption continue to pose significant challenges in Nigeria. According to a report by the National Bureau of Statistics (NBS) in July 2024, Nigerians paid ₦721 billion in bribes to public officials in 2023, further underscoring the ongoing issue of corruption in the public sector.
