Auditor-General Report Exposes N197.72 Billion in Irregular Contract Payments Across Nigerian MDAs

The Office of Nigeria's Auditor-General of the Federation has uncovered irregular contract payments totaling N197.72 billion across various ministries, departments, and agencies (MDAs). The findings are detailed in the Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses for 2020–2021.

Summary of Findings

The report revealed widespread violations of financial regulations and procurement laws, including irregular contract awards and payments for uncompleted or unexecuted projects.

1. Irregular Contract Awards:
   A total of N7.386 billion was attributed to irregular contract awards by 32 MDAs.

   • The Rural Electrification Agency (REA) accounted for the highest amount, with N2.12 billion.
   • The Nigerian Security Printing and Minting Company (NSPM) recorded the least, at N11.7 million.

   The report stated:
   “The sum of N7,386,551,051.09 was the value of irregularities in the award of contracts by 32 ministries, departments, and agencies.”

2. Unexecuted or Partially Executed Projects:
   Approximately N167.59 billion was paid for contracts that were either partially or completely unexecuted, a direct violation of Financial Regulations Paragraph 708, which prohibits payments for goods or services not yet delivered.

   • The Nigerian Bulk Electricity Trading Plc was the largest contributor, with N100 billion in irregular payments.
   • The National Centre for Women Development recorded the least, with N2.17 million.

3. Violation of Due Process:
   Contracts worth N20.33 billion were awarded in violation of the Public Procurement Act (PPA) 2007, which mandates strict adherence to procurement protocols and approvals.

   • The NSPM recorded the highest amount, with N14.14 billion in due process violations.
   • The Corporate Affairs Commission had the least, with N8.98 million.

   The report emphasized:
   “The sum of N20,334,104,016.27 was the value of contracts awarded in violation of due process by 24 ministries, departments, and agencies.”

Broader Context of Financial Corruption

Financial corruption remains a significant challenge in Nigeria. According to a corruption survey report released by the National Bureau of Statistics (NBS) in July 2024, Nigerians spent N721 billion in bribes to public officials in 2023.