The Office of Nigeria’s Auditor-General of the Federation has identified irregular contract payments totaling N197.72 billion.
These payments involve the Rural Electrification Agency, Nigerian Bulk Electricity Trading Plc (a subsidiary of the Central Bank of Nigeria), the Nigerian Security Printing and Minting Company, and various other ministries, departments, and agencies.
The findings are detailed in the Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses, which covers the period from 2020 to 2021. The violations highlighted include irregular contract payments, as well as payments for jobs that were only partially completed or not executed at all, in breach of the country’s financial regulations and procurement laws.
Specifically, N7.386 billion was the amount of irregularities in the award of contracts by 32 MDAs.
REA topped the chart with N2.12 billion while NSPM recorded the least with N11.7 million.
“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 kobos) was the number 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,” the report indicated.
“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 kobos) was the number of payments for jobs/contracts not executed by 31 ministries, departments and agencies,” it added.
“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).”
These violations contravene Section 16(21) of the Public Procurement Act (PPA) 2007, which mandates strict adherence to procurement plans and obtaining necessary approvals prior to awarding contracts.
The audit report highlighted frequent non-compliance with these stipulations. It revealed that the Nigerian Security Printing and Minting Company (NSPM), a subsidiary of the Central Bank of Nigeria (CBN), was responsible for the highest amount of due process violations, amounting to N14.14 billion.
In contrast, the Corporate Affairs Commission had the least violations, totaling N8.98 million.
“The sum of N20,334,104,016.27 (twenty billion, three hundred and thirty-four million, one hundred and four thousand, sixteen nairas, twenty-seven kobo) was the number 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 kobos) 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),” it added.
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