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Massive N197bn Contract Fraud Uncovered in MDAs by Auditor-General
A recent report by the Auditor-General of the Federation has uncovered financial irregularities totaling over N197.72 billion across various ministries, departments, and agencies (MDAs) in Nigeria.
The report, which highlights systemic lapses in financial compliance and procurement processes, focuses on activities between 2020 and 2021.
The findings are detailed in the Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses and aim to assist stakeholders, including the National Assembly’s Public Accounts Committees, in addressing the identified lapses and recovering lost funds.
One of the key revelations involves irregularities in the award of contracts amounting to N7.39 billion across 32 MDAs. These breaches contravened Paragraph 2921(i) of the Financial Regulations (2009), which mandates open competitive bidding for all procurement processes.
“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 report stated.
The Rural Electrification Agency, Abuja, recorded the highest irregularity in this category, amounting to N2.12 billion, while the Nigerian Security Printing and Minting Company (NSPM) accounted for the lowest irregularity, at N11.72 million.
Another major finding was the payment of N167.59 billion for jobs or contracts that were either partially executed or not executed at all, violating Paragraph 708 of the Financial Regulations.
“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 report noted.
The Nigerian Bulk Electricity Trading Plc, Abuja, accounted for the highest irregular payment at N100 billion, while the National Centre for Women Development recorded the least irregularity at N2.17 million.
Violations of due process in contract awards were also highlighted, totaling N20.33 billion 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 report found these requirements were often ignored.
“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,” it read.
The NSPM, Abuja, accounted for the highest amount of violations in this category, totaling N14.14 billion, while the Corporate Affairs Commission recorded the least, at N8.98 million.
Additionally, contracts worth N2.41 billion were awarded above approved financial thresholds without obtaining the required “Certificate of No Objection” from the Bureau of Public Procurement.
“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 report added.
The Ahmadu Bello University Teaching Hospital, Zaria, recorded the highest amount of violations in this category at N1.06 billion, while the Federal Medical Centre, Bida, accounted for the least amount, at N9.9 million.
The report categorized these issues as “cross-cutting,” indicating systemic flaws across multiple MDAs. It criticized weak internal controls within the agencies and called for stricter enforcement of financial regulations to prevent future occurrences.
The revelations have raised concerns about the government’s ability to manage public funds efficiently, especially amid economic challenges such as inflation and rising debt.
In response to the report, the Centre for Anti-Corruption and Open Leadership (CACOL) has demanded a thorough investigation into alleged misappropriation of N4.64 billion by the Ministry of Works and Housing, under the leadership of Babatunde Fashola.
The Auditor-General’s report identified financial irregularities in the housing sector between 2020 and 2021, including payments made without proper documentation, extra-budgetary expenditures, mobilisation fees exceeding approved thresholds, and contracts awarded without following due process.
These findings underscore the urgent need for reforms to restore public confidence in Nigeria’s financial management system and ensure accountability for public funds.
Lagos Internal Revenue Service (LIRS) pursuant to Section 60 of the Nigeria Tax Administration Act (NTAA), plans to ask Nigerian banks to debit bank accounts of employers who failed to remit tax liability.
This was disclosed in a recent notice on Sunday.
LIRS stressed that the move was in line with the implementation of the country’s NTAA and other new tax laws, which took effect on January 1, 2026.
“Where a taxpayer fails, neglects, or refuses to settle any established outstanding tax liability when due, LIRS may exercise its power under Section 60 to direct any of the following persons to pay the amount owed by the taxpayer:
“Banks and other financial institutions; Employers; tenants, debtors, or customers of the taxpayer; Agents, business partners, and any person holding money on behalf of the taxpayer; Any person owing money to the taxpayer, whether presently due or accruing. Once a substitution notice is issued, the person served is statutorily required to remit to LIRS the amount. Specified in the notice from funds belonging to, or payable to, the defaulting taxpayer,” the LIRS notice partly read.
Meanwhile, Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, weeks ago ruled out claims that the government would debit personal accounts over tax remittances.
Anambra State will implement pro-rata salary payments for civil servants starting February 2026, targeting chronic Monday absenteeism from the long-running sit-at-home order, Information Commissioner Dr. Law Mefor announced Saturday.
Soludo
Speaking at an Awka briefing after the Executive Council’s end-of-tenure retreat, Mefor said improved security and transport have eliminated excuses for the four-year disruption, which cost the state trillions in lost revenue. “Workers enjoyed full pay despite staying away; now, no work means no pay for that day, calculated over 24 working days,” he stated.
Compliance measures include mandatory Monday clock-in forms, with markets urged to reopen fully amid bolstered security. This builds on a January 22 executive order docking 20% pay from teachers absent on Mondays.
Mefor warned that lost Mondays cripple revenue collection and productivity, rejecting alternatives like Saturday shifts as capitulation to agitators.
News
Stakeholders Demand Stronger Governance and Infrastructure to Drive Tech Adoption @ Lagos AI Summit
As AI adoption accelerates across Nigeria, leaders at the “AI in Action Now” conference 2026 have called for a balance between rapid innovation and strict regulatory governance. The event, held at the Lagos Oriental Hotel, highlighted both the doggedness of Nigerian builders and the risks of unregulated data usage.
Dotun Adeoye, Co-Founder of AI Nigeria, raised alarms over “Shadow AI”, a trend where employees upload sensitive official documents to public AI platforms. He praised the Nigerian Data Protection Commission (NDPC) for its recent aggressive stance, including multi-million-dollar fines against major banks and social media brands.
“Innovation without governance is dangerous. The regulator now has the job of educating players. We are working in partnership with them to ensure players don’t just get fined, but actually understand how to protect data locally rather than storing it abroad, ” Adeoye noted.
Addressing issues of lack of infrastructure to carry AI adoption, Conference Convener Debola Ibiyode admitted that while Nigeria lacks the traditional foundation for AI adoption, the tech community cannot afford to wait.
“The simple answer is we don’t have the infrastructure, but Nigeria has never really had infrastructure to drive anything, and we still thrive, ” Iboyode said, encouraging students and builders to look beyond current limitations. “Once we start to build based on what we have now, it will encourage those who need to provide the infrastructure to do their part. The world will not wait for us,” she insisted.
To bridge this gap, she highlighted the AI Foundry Africa, an incubator designed to mentor ideas into market-ready products.
Meanwhile, speaking to journalists on the sidelines, Biodun Ogunleye, the Lagos State Commissioner of Energy and Mineral Resources, echoed the sentiment that the government’s role is to facilitate the right environment through partnership. He emphasized that data generated from interactions with the government must have long-term value.
“We must ensure that in all facets from production to interaction with government, the tools required to ensure data has value are appreciated,” Ogunleye stated.
He concluded that through private-sector collaboration, the government can focus on its primary functions while leveraging AI to ensure the nation aspires for the future.
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