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Auditor General Uncovers N3.4trn Fraud In MDAs
The Office of Auditor General for the Federation (OAuGF) has said it uncovered financial infractions amounting to N3.4 trillion in several government Ministries, Department and Agencies (MDAs) for the financial year ending December 31, 2021.
The alleged infractions reported in 28 audit issues are contained in the 2021 audit report of non-compliance/internal control weaknesses in the MDAs for the 2021 financial year.
The report was submitted to the National Assembly via a letter, dated October 15, 2024 by the Auditor General for the Federation (AuGF), Shaakaa Kanyitor Chira.
It said N2.902 trillion of the amount was incurred through the failure of eight agencies to recover outstanding government revenue with the Nigerian Bulk Electricity Trading Plc failing to recover N2.896 trillion.
In a letter addressed to the Clerk to the National Assembly, Chira said the infractions were part of what he called cross-cutting issues which he said were the same non-compliance/internal control weaknesses that were identified in at least four MDAs of the Federal Government of Nigeria (FGN) covered by the Auditor-General for the Federation’s Annual Report on Non-compliance/Internal Control Weaknesses in MDAs of the FGN for the year ended December 31, 2021.
The AuGF said the attention of the Public Accounts Committees of the National Assembly had been drawn to the issues through recommendations, including sanctions, with a view to stemming the tide.
He said the issues were treated in details under each MDA.
Chira explained that the essence of putting the issues together was to further assist the Public Accounts Committees and other stakeholders to see, at a glance, the amount the report sought to help the Federal Government recover from a class of issues, tagged: ‘Cross-Cutting’.
The report, a copy of which was obtained by The Nation, said N7.386 billion was discovered as part of irregularities in the award of contracts by 32 MDAs with the Rural Electrification Agency, Abuja, having the highest infraction of N2.118 billion while the NSPMC had the least amount of N11.7 million.
The report alleged irregular payment of N115.675 billion by 64 MDAs with the Nigerian Bulk Electricity Trading Plc, Abuja, having the highest infraction of N96.2 billion while the Federal Neuro-Psychiatric Hospital, Kaduna, had the least amount of N1.323 million.
The AuGF said N167.592 billion was found to be for contracts that were not executed by 31 MDAs in the year under reference with the Nigerian Bulk Electricity Trading paying N100 billion, while the National Centre for Women Development paid the least amount for unexecuted contracts to the tune of N2.171 million.
The report said six MDAs failed to deduct Withholding Tax and Value Added Tax (VAT) amounting to N129.341 million as the accruing taxes to the government, with the Federal Road Safety Corps (FRSC) failing to deduct the highest tax amounting to N90.58 million, while the Federal Ministry of Labour and Employment came last with N623,162.80.
It added that 21 MDAs failed to deduct N2.636 billion as tax from payments to several beneficiaries, with the Nigerian Security Printing and Minting Company Pic (NSPMC) leading the pack with N41.009 billion, while the Federal Medical Centre, Ebute Meta in Lagos, had the least amount of N617,427.66.
According to the report, 11 MDAs failed to remit N11.561 billion tax deducted from tax payers to the relevant tax authorities, with the Nigerian Security Printing and Minting Company Plc (NSPMC), failing to remit the highest amount of N10.393 billion while the Federal Medical Centre, Katsina, failed to remit N1.371 million to come last.
The report also said that the sum of N8.312 billion was paid out by about 40 MDAs without supporting documents to back up the payment, with the Presidential Amnesty Programme (PAP), being the biggest culprit with N1.529 billion while the, Federal College of Land Resources Technology, Owerri, has the least amount of N1.992 million.
It also alleged that eight MDAs misapplied N663,854,877.01 in contravention of extant laws, with the University of Benin Teaching Hospital, Benin City, spending about N253,532,050.49 of the money, while 24 other MDAs awarded contracts worth N20.334 billion without following due process; the Nigerian Security Printing and Minting Company Plc (NSPMC) was said to have awarded contracts valued at N14.136 billion without following due process.
According to the report, the Federal Inland Revenue Service (FIRS) failed to recover about N69.928 billion as tax liabilities from 26 of its outstation offices within the period under review, while items valued at N968.908 billion were taken from the store by 29 MDAs without ledger charge with the Nigerian Railway Corporation (NRC), Lagos, alone accounting for N125 billion of the items.
The audit report also said in 2021, 15 MDAs carried out extra-budgetary expenditure amounting to N15.786 billion with the National Agricultural Land Development Authority (NALDA), accounting for N8.86 billion of the amount.
In addition, it said six MDAs carried out virement of about N2.63 billion without approval, with the Rural Electrification Agency (REA) accounting for N1.9 billion of the amount, while about N122.5 billion was left unaccounted for by 19 MDAs, with the Nigerian Bulk Electricity Trading Plc failing to N111.601 billion of the amount.
The report also said about N6.602 billion was generated internally by 29 MDAs but not remitted to the appropriate authority, adding that the National Pension Commission withheld the highest amount of N4,429,550,386.58, while 35 MDAs circumvented the procurement process that caused the loss of N1,948,132,710.98.
It accused nine MDAs of paying external solicitors about N243,932,964.27 engaged without the Attorney-General’s Fiat with the Bureau of Public Procurement having the highest amount of N112,261,659.00, while another 5 MDAs paid some unspecified third parties about N439,688,368.76 without the attorney general’s approval.
Five MDAs reportedly awarded contracts valued at N2.407 billion and above their approval threshold with Ahmadu Bello University Teaching Hospital, Zaria, having the highest amount of N1,065,614,232.70, while the workers and unauthorised persons in five MDAs illegally held on to government vehicles valued at N747,749,365.06, with the Nigerian Security Printing and Minting Company (NSPMC) Plc, Abuja, having the highest amount of N413,343,623.00.
Other infractions reported by the AuGF include denial of access to documents with expenditure amount to N21,480,891,930.77 by 11 MDAs, unretired cash advances in 30 MDAs amounting to N1,300,643,209.41 and payment without vouchers amounting to N1,135,025,464.67, with the Federal Ministry of Works (Housing Sector) having the highest amount of N1,076,662,242.61.
The Nation
News
Trump Replies Episcopal Bishop’s Call for Mercy on LGBTQ+ Community and Migrant Workers
By Kayode Sanni-Arewa
During the inaugural prayer service, Right Reverend Mariann Budde, the Episcopal Bishop of Washington, delivered a poignant message urging President Donald Trump to extend mercy to the LGBTQ+ community and undocumented migrant workers.
Her powerful appeal was made in front of a congregation gathered for the historic event, calling on the president to embrace compassion and understanding toward marginalized groups.
Following the service, President Trump was asked about the sermon and the bishop’s remarks.
In a brief interaction with the press, the president remarked that he did not believe the service had been “a good service,” without further elaborating on his stance.
Bishop Budde’s remarks have sparked a range of reactions, with advocates for LGBTQ+ rights and immigrant communities expressing hope that her call would resonate with the president, while others have criticized the president’s response.
The appeal for mercy and inclusion comes as the new administration begins its term, and its stance on issues of social justice and human rights remains closely watched.
News
Inflation, Rising Costs Behind 50% Telecom Tariff Increase – Minister
…FG to invest ₦6bn in fibre optic expansion
By Gloria Ikibah
The Minister of Communication, Innovation, and Digital Economy, Dr. Bosun Tijani, has attributed the recent 50 percent increase in telecommunication tariffs to inflation and rising operational costs.
The Minister disclosed this during the 2025 budget defense session held by the joint House of Representatives and Senate Committees on Communication, on Tuesday in Abuja.
Explaining the rationale behind the tariff hike, Dr. Tijani stated that the move aligns with broader economic trends where increased tariffs lead to higher consumer prices due to added costs on imported goods.
The Minister also revealed plans by the Federal Government to invest ₦6 billion in the deployment of 90,000 kilometers of fiber optic cables, increasing Nigeria’s current coverage from 35,000 kilometers to 125,000 kilometers, and he described this initiative as a critical step towards boosting communication infrastructure and fostering growth in key sectors of the economy.
“Tariffs act as a sales tax, causing a one-off price increase rather than sustained inflation.
“Outside of South Africa and maybe Egypt or Tunisia, many African countries face a significant deficit in fiber optic cable coverage.
“This is going to become a big business. We want Nigerian companies not only to lay cables within Nigeria but also to provide these services for neighboring countries. And we want our people to be the workforce driving this transformation,” he said.
Dr. Tijani who emphasised the importance of communication infrastructure in ensuring security and economic development, highlighted the historical reliance on private investment for telecommunications infrastructure, which has often prioritized profitable urban areas over rural communities.
“Private companies only invest where they see potential returns.
“They use tools like night-time satellite data to identify economic activity, represented by lights, and focus their investments in those areas. This has left many underserved regions without proper infrastructure. Addressing this disparity is a priority for us,” he explained.
The Minister, however, lamented the inadequate funding of the Ministry, which he said hampers its ability to fulfill its mandate effectively.
“The Ministry is underfunded compared to agencies like the NCC. We lack the necessary resources and software to track revenue-generating activities efficiently. With better funding, the Ministry could generate significantly more revenue and enhance its impact,” he said.
In his remarks, Senator Shuaib Salisu, Co-Chairman of the Senate Committee on Communication, acknowledged the critical contributions of the communication sector to Nigeria’s economic growth. He called for a review of the Ministry’s 2025 proposed budget to ensure it is adequately equipped to deliver on its mandate.
Following discussions, the Committee adopted a motion urging the Committees on Appropriation to consider an upward revision of the Ministry’s budget for 2025.
News
Kalu Calls On UK Govt to Support Nigeria’s War Against Corruption
…praised diplomatic ties between the two countries
By Gloria Ikibah
The Deputy Speaker of the House of Representatives, Rep. Benjamin Kalu, has called on the government of United Kingdom (UK) to support Nigeria’s fight against corruption.
The Deputy Speaker made the call during his speech in an event tagged “UK-Nigeria Collaboration: A Parliamentary Strategic Dialogue” which attracted the presence of the Deputy Leader of the British House of Lords, Rt. Hon. Lord Collins among other members of parliament from Nigeria and UK in London on Wednesday.
Kalu emphasized the importance of collaboration between the two countries in tackling corruption amongst other challenges.
He commended the diplomatic ties between Nigeria and the United Kingdom, highlighting the potential for deepened economic relationships.
Referencing the partnership between Nigeria and the UK as a testament to shared values and mutual interests, Kalu added that by deepening collaboration across these sectors, both countries will unlock the opportunities for sustainable growth and development.
He said: “The UK-Nigeria Strategic Partnership establishes a comprehensive framework for deepening bilateral relations and achieving shared objectives. This collaboration spans six pillars: Growth and Jobs: Through the Enhanced Trade and Investment Partnership (ETIP), both nations will drive mutual economic growth by addressing market barriers, boosting two-way trade, and fostering sustainable investments in manufacturing, agriculture, and energy.
“Both nations commit to facilitating safe migration, tackling visa abuse, and operationalizing prisoner transfer agreements while advancing reforms in global financial systems.
“I wish to call on the UK Government to intensify its efforts towards supporting Nigeria’s war against corruption in all its facets. One of the ways the UK can support this fight is to ease the process of repatriation of monies seized from Nigerian officials that are trapped in the UK financial system. Incidentally, I am here with the Chairman of the Nigerian Parliament Committee on Financial Crimes and he will be happy to continue the conversation with relevant officials.
“Nigeria seeks the UK’s continued support in recovering illicit funds. Enhanced collaboration should focus on: Setting up mechanisms to curb illicit financial flows. Strengthening institutions to combat corruption. Facilitating asset recovery processes through bilateral agreements”.
Kalu who is the Chairman, Nigeria’s House Committee on Constitution Review and an advocate for political inclusion also called on the UK’s Foreign, Commonwealth & Development Office (FCDO) to support the work of the panel.
“As Chair of the House Committee on Constitution Review, I acknowledge the monumental task of refining Nigeria’s constitutional framework to reflect the evolving needs of its people. Key issues under deliberation—such as the creation of special status seats for women in legislative assemblies, the enactment of more gendersensitive legislation, and the potential introduction of sub-national policing—are pivotal to fostering inclusive governance and addressing the nation’s security challenges.
“Thus, I implore the UK’s Foreign, Commonwealth & Development Office (FCDO) to extend tailored support to the Committee’s critical work. By providing technical assistance, research expertise, and capacity-building programs, the FCDO can help ensure that these constitutional reforms are comprehensive, evidence-based, and aligned with international best practices.
“Such support would not only strengthen Nigeria’s democratic institutions but also reinforce shared values of equity, justice, and security, which underpin the UK-Nigeria Strategic Partnership. This collaboration would demonstrate a profound commitment to empowering marginalized groups, ensuring safer communities, and fortifying Nigeria’s legislative framework for future generations”, he said.
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