Auditor-General Nigeria: NAPTIN N3.62bn Irregularities Found

• The Auditor-General for the Federation flagged at least N3.62 billion in financial irregularities at the National Power Training Institute of Nigeria (NAPTIN) between 2022 and 2023.
• A major finding was N2.77 billion in unremitted tender fees that should have been paid into the Consolidated Revenue Fund, lacking proper transaction evidence.
• NAPTIN also made N547.21 million in payments for store items without evidence of delivery and N196.59 million for constituency projects with unverified contractor eligibility and lack of oversight.
• Other issues included missing financial records, under-remittance of taxes, and N29.65 million in allowances improperly charged to constituency project accounts.
• The Auditor-General recommended that NAPTIN's Director-General account for, recover, and remit the funds, warning of sanctions for non-compliance.

The Auditor-General's 2024 report on NAPTIN's financial irregularities carries significant implications for public sector governance and financial integrity in Nigeria.

The Office of the Auditor-General for the Federation has identified significant financial irregularities totaling at least N3.62 billion at the National Power Training Institute of Nigeria (NAPTIN) in Abuja. These findings are detailed in the Auditor-General’s 2024 Annual Report on Non-compliance, which scrutinizes the institute's financial activities between January 1, 2022, and December 31, 2023. The report highlights nine quantified findings that collectively amount to approximately N3.62 billion, though it notes that this figure does not include other findings where specific monetary values were not assigned or incomplete entries were present.

The most substantial irregularity concerns N2.77 billion, representing proceeds from the sale of bid documents and tender fees. Auditors found that this sum was not remitted to the Consolidated Revenue Fund (CRF), a requirement under existing government regulations. Furthermore, there was no verifiable evidence to support bid purchase transactions conducted through Remita, as crucial documentation was not made available for the audit process.

Additional issues flagged include N547.21 million paid across eleven transactions for the procurement of various store items. For these purchases, NAPTIN failed to provide evidence of delivery or Store Receipt Vouchers (SRVs), which would confirm that the items were received and properly recorded in the institute's inventory ledger. The report also questioned N196.59 million allocated for three constituency projects, encompassing electricity transformers and solar streetlights in Ogun, Lagos, and Osun states. These projects included N59.2 million for transformer installations in Ogun, N38.53 million for solar streetlights in Lagos's Epe Federal Constituency, and N98.86 million for transformers in Ijebu Jesa, Osun State. Auditors found no proof that the contractors involved were eligible through the Bureau of Public Procurement's interim registration process, nor was there evidence of monitoring and certification by the Federal Ministry of Special Duties and Intergovernmental Affairs, as mandated by relevant guidelines. Moreover, the report noted a lack of documentation confirming the receipt of supplied items into NAPTIN's store.

Other irregularities cited in the report include missing financial records, under-remittance of taxes, and payments for consultancy services without corresponding evidence of execution. A specific instance involved N29.65 million spent on duty tour allowances, sitting allowances, and honoraria, which were improperly charged to accounts designated for constituency projects.

The Auditor-General's findings underscore significant breaches of established government financial regulations Nigeria and public procurement protocols. The failure to remit N2.77 billion in tender fees to the Consolidated Revenue Fund directly contravenes extant regulations designed to ensure transparency and proper accounting of public funds. Similarly, the absence of delivery evidence for store items and the lack of proper contractor eligibility verification for constituency projects point to potential Public Procurement Act Nigeria violations, which mandate stringent processes for public expenditure.

The report's recommendations are clear: NAPTIN's Director-General is required to account for the unremitted and improperly spent funds before the Public Accounts Committees of the National Assembly. The Director-General is also tasked with recovering these amounts and remitting them to the Treasury. The Auditor-General emphasized that failure to implement these recommendations could lead to sanctions under the Financial Regulations, highlighting the serious implications of NAPTIN financial non-compliance. The audit process itself serves as a critical mechanism for upholding accountability and ensuring adherence to fiscal discipline within public sector entities.

The Auditor-General's 2024 report on NAPTIN's financial irregularities carries significant implications for public sector governance and financial integrity in Nigeria. The identified issues, particularly the unremitted tender fees Consolidated Revenue Fund and questionable contract payments, raise concerns about the potential for diversion of public funds and a lack of accountability. The absence of proper documentation for bid purchases, item deliveries, and contractor eligibility creates an environment ripe for financial mismanagement and fraud, eroding public trust in government institutions.

This detailed audit serves as a strong signal of increased scrutiny on financial regulations and public procurement compliance across all government agencies. For public sector entities and contractors operating in Nigeria, these findings underscore the critical importance of robust internal controls, meticulous record-keeping, and strict adherence to procurement guidelines. The Auditor-General's focus on evidence of delivery, contractor eligibility, and proper fund remittance indicates a heightened commitment to enforcing financial discipline and mitigating audit risks, which could lead to severe sanctions for non-compliance.

Lawyers advising public sector entities or contractors in Nigeria should note the Auditor-General's focus on unremitted tender fees, questionable contract payments, and lack of delivery evidence. This signals increased scrutiny on financial regulations and public procurement compliance, necessitating a review of internal controls and record-keeping to mitigate audit risks and potential sanctions.

Source: Original reporting via Punch Newspapers