Auditor General uncovers N197bn contract fraud in FG ministries, agencies - Newstrends
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Auditor General uncovers N197bn contract fraud in FG ministries, agencies

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Auditor General uncovers N197bn contract fraud in FG ministries, agencies

A new audit of the Federal Government’s ministries, departments, and agencies (MDAs)  has revealed a staggering N197.72 billion contract fraud.

The findings, which cover activities between 2020 and 2021, expose serious lapses in financial compliance and procurement processes.

It showed 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, according to a Sunday PUNCH report.

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).”

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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.

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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.

CACOL demands probe

Meanwhile, the Centre for Anti-Corruption and Open Leadership has called for a thorough investigation into the alleged misappropriation of N4.64bn by the Ministry of Works and Housing.

An audit report by the Auditor-General for the Federation had also uncovered financial irregularities totaling over N4.64bn in the Federal Ministry of Works (Housing Sector) between 2020 and 2021.

The report details several issues, including payments made without proper documentation, extra-budgetary expenditures, mobilisation fees exceeding approved thresholds, and contracts awarded without following due process.

The Auditor-General recommended that the Permanent Secretary of the ministry justify the payments, recover the funds, and remit them to the treasury.

Auditor General uncovers N197bn contract fraud in FG ministries, agencies

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Yemi Osinbajo Appointed Senior Strategic Adviser to Africa CDC

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Former Nigerian Vice-President Yemi Osinbajo
Former Nigerian Vice-President Yemi Osinbajo

Yemi Osinbajo Appointed Senior Strategic Adviser to Africa CDC

Former Nigerian Vice-President Yemi Osinbajo has been appointed as Senior Strategic Adviser to the Director-General of the Africa Centres for Disease Control and Prevention (Africa CDC), as the agency pushes forward the continent’s Africa Health Security and Sovereignty (AHSS) agenda.

The appointment, announced on Monday, comes at a critical time as Africa CDC seeks to enhance health systems, boost domestic financing, expand local production of medical supplies, and strengthen Africa’s influence in global health governance. In this role, Osinbajo will provide strategic guidance on pandemic preparedness, sustainable healthcare financing, policy direction, and continental collaboration.

Director-General Jean Kaseya praised Osinbajo’s wealth of experience, highlighting his expertise at the intersection of governance, finance, law, and diplomacy. “At a time when Africa must act with greater authority on the future of health, his leadership will be invaluable,” Kaseya said. He added that Osinbajo’s appointment reflects Africa CDC’s commitment to mobilising top African leadership in service of the continent’s health security and development.

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Osinbajo served as Nigeria’s Vice-President from 2015 to 2023, during which he chaired the Economic Sustainability Committee, contributed to reforms enhancing the ease of doing business, and played a key role in implementing Nigeria’s social investment programmes. Earlier, he was Attorney-General and Commissioner for Justice in Lagos State from 1999 to 2007. His legal and governance background positions him to offer critical insights on health policy, regulatory frameworks, and strategic partnerships.

The AHSS agenda, which Osinbajo will help drive, seeks to strengthen Africa’s self-reliance in health, improve disease surveillance, and foster regional collaboration to respond more effectively to pandemics and other public health emergencies. Experts say his advisory role will be crucial in promoting local production of vaccines and medical equipment, ensuring Africa can meet its own health needs while influencing global health decisions.

Africa CDC, operating under the African Union, aims to support member states in building resilient health systems capable of confronting future outbreaks and public health crises. Osinbajo’s appointment is expected to further amplify Africa’s voice in global health while ensuring sustainable health development across the continent.

Yemi Osinbajo Appointed Senior Strategic Adviser to Africa CDC

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Iran Lists Tough Conditions for Peace Talks with US

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Iran’s Foreign Minister, Abbas Araghchi

Iran Lists Tough Conditions for Peace Talks with US

By Agency Report

Iran has outlined a set of strict preconditions for engaging in negotiations with the United States aimed at achieving a lasting peace, signalling a hardening of its stance amid ongoing hostilities in the Middle East.

According to a senior Iranian official who spoke to Reuters, Tehran is insisting on an immediate halt to U.S. military strikes, alongside firm guarantees that such attacks will not be repeated, as a prerequisite for any talks.

The official also disclosed that Iran is demanding compensation for damages suffered during the conflict, underscoring the country’s position that any future negotiations must address the consequences of the ongoing war.

In a further indication of its firm posture, Iran has rejected proposals for a temporary ceasefire, maintaining that only a comprehensive and permanent peace agreement would be acceptable.

Tehran is also pushing for new arrangements regarding the strategic Strait of Hormuz, including the right to impose transit fees on vessels passing through the vital global oil shipping route. The proposed fees, according to the official, would vary depending on the type of vessel, its cargo, and prevailing conditions.

The development comes amid intensified diplomatic efforts led by regional mediators, including Pakistan, to broker a ceasefire between the two sides. A U.S.-backed proposal for a 45-day truce has reportedly been put forward as a stepping stone toward broader negotiations, though Tehran has dismissed the idea as insufficient.

Tensions between the two countries remain high, with both sides holding firm to their positions. Analysts say Iran’s demands reflect a broader strategy to secure long-term guarantees and reshape the terms of engagement in the region, rather than accept short-term de-escalation measures.

With neither side showing signs of compromise, prospects for immediate negotiations appear uncertain, raising concerns about further escalation and its implications for global security and energy markets.

 

Iran Lists Tough Conditions for Peace Talks with US

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Tinubu Unveils ₦3.3tn Electricity Bailout to Revive Nigeria’s Power Sector

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President Bola Ahmed Tinubu
President Bola Ahmed Tinubu

Tinubu Unveils ₦3.3tn Electricity Bailout to Revive Nigeria’s Power Sector

President Bola Ahmed Tinubu has approved a sweeping ₦3.3 trillion power sector bailout aimed at clearing long-standing debts and stabilising Nigeria’s struggling electricity industry.

The intervention, implemented under the Presidential Power Sector Financial Reforms Programme, is designed to resolve liabilities accumulated between February 2015 and March 2025, following a comprehensive verification process.

Presidential spokesman Bayo Onanuga disclosed that the ₦3.3 trillion electricity debt settlement represents a full and final agreement to restore financial stability across the sector. He explained that the debts, largely driven by unpaid invoices, tariff shortfalls, and subsidy obligations, had significantly weakened liquidity in the power value chain.

Implementation of the power sector debt repayment plan has already commenced, with 15 generation companies signing settlement agreements worth about ₦2.3 trillion. The Federal Government has raised ₦501 billion so far to fund the initiative, out of which ₦223 billion has already been disbursed, while additional payments are ongoing.

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The Nigeria electricity sector bailout is expected to inject much-needed cash into the industry, ensuring that gas suppliers receive payments, power plants can sustain operations, and electricity generation becomes more stable. With improved liquidity, officials say the country could begin to see gradual improvements in power supply, reduced grid disruptions, and better service delivery.

Special Adviser on Energy to the President, Olu Arowolo-Verheijen, said the programme is not just about clearing debts but rebuilding trust across the industry. She noted that restoring confidence is critical to attracting investment, maintaining consistent gas supply, and ensuring that power plants operate efficiently.

She further explained that the initiative forms part of broader power sector reforms in Nigeria, including nationwide metering improvements and the introduction of service-based tariffs that align electricity costs with the quality of supply. According to her, the government is also prioritising electricity supply to businesses, industries, and small enterprises, recognising that reliable power is essential for job creation and economic growth.

The Tinubu administration believes the electricity sector stabilisation plan will reduce reliance on generators, lower the cost of doing business, and improve productivity across key sectors of the economy. Analysts say resolving the sector’s liquidity crisis could unlock new investments and strengthen Nigeria’s overall economic performance.

President Tinubu also commended stakeholders for their cooperation in addressing long-standing challenges in the industry and confirmed that the next phase of the reform programme, Series II, will commence within the current quarter. The phase is expected to deepen structural reforms and ensure long-term sustainability of the electricity market.

Tinubu Unveils ₦3.3tn Electricity Bailout to Revive Nigeria’s Power Sector

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