By Divine Sam
The Office of Nigeria’s Auditor-General of the Federation has uncovered a massive contract fraud involving irregular payments amounting to N197.72 billion across several ministries, departments, and agencies (MDAs), including the Rural Electrification Agency (REA), Nigerian Bulk Electricity Trading Plc (NBET), and the Nigerian Security Printing and Minting Company (NSPM). The irregularities, detailed in the 2020-2021 Annual Report on Non-Compliance and Internal Control Weaknesses, include payments for contracts not executed or only partially completed, violating financial regulations.
Of the total, N167.59 billion was paid for jobs that were either not executed or only partially completed, with NBET responsible for the largest share, amounting to N100 billion. Additionally, N20.33 billion in contracts were awarded without adhering to proper procurement processes. REA had the highest amount of irregular payments (N2.12 billion) for contract awards, while NSPM, a CBN subsidiary, recorded the highest violations of due process (N14.14 billion). The audit underscores significant financial mismanagement and corruption in public sector procurement.
The findings highlight the need for stronger accountability and enforcement of financial regulations in Nigeria’s public sector, especially in light of widespread corruption, as indicated by a recent corruption survey revealing that Nigerians paid N721 billion in bribes to public officials in 2023.