N197.72 billion contract fraud uncovered by Fed Gov’t in CBN, REA, NBET, others – Crime Channels

N197.72 billion contract fraud uncovered by Fed Gov’t in CBN, REA, NBET, others

Some irregularities in contract payments totaling N197.72 billion across several key 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), among others, has been uncovered by the Office of Nigeria’s Auditor-General.

These findings, revealed in the Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses, cover the period from 2020 to 2021.

The report highlights significant breaches in financial and procurement protocols, including payments for contracts that were either only partially completed or not executed at all. The findings suggest widespread non-compliance with the country’s financial regulations.

Among the 32 Ministries, Departments, and Agencies (MDAs) flagged for irregularities, N7.386 billion was identified as being misappropriated in contract awards. The REA emerged as the agency with the highest irregular payments, totaling N2.12 billion, while NSPMC had the smallest irregularity, amounting to 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 most alarming finding in the report revealed that a total of N167.59 billion was paid for jobs or contracts that were either partially completed or not executed at all. This violates Paragraph 708 of the Financial Regulations, which prohibits payments for undelivered services or goods.

The Nigerian Bulk Electricity Trading Plc, a key agency in the power sector, was responsible for the largest share of these irregular payments, amounting to N100 billion. In contrast, the National Centre for Women Development recorded the smallest irregularity, with a payment of N2.17 million.

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 kobos) was the number 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 revealed significant due process violations in contract awards totaling N20.33 billion across 24 Ministries, Departments, and Agencies (MDAs). These violations contravene Section 16(21) of the Public Procurement Act (PPA) 2007, which mandates compliance with procurement plans and the necessity for prior approvals before contracts are awarded.

The audit found that these provisions were frequently disregarded. Notably, NSPM, a subsidiary of the Central Bank of Nigeria, was identified as the primary offender, accounting for N14.14 billion in violations, while the Corporate Affairs Commission reported the smallest amount of 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.