Nigeria Auditor-General: N124bn Contract Irregularities Found

• The Auditor-General for the Federation identified N124.12 billion in contract and procurement irregularities across federal government Ministries, Departments, and Agencies (MDAs).
• These infractions include N76.96 billion for irregular contract awards, N19.91 billion for due process violations, and N27.25 billion for unexecuted or improperly executed jobs.
• The findings are detailed in the 2024 Annual Report on Non-Compliance/Internal Control Weaknesses, dated July 17, 2026, and transmitted to the National Assembly.
• Key regulations cited include Paragraph 2921(i) and 708 of the Financial Regulations 2009, and provisions of the Public Procurement Act 2007.
• The National Population Commission, National Agricultural Land Development Authority, and National Institute of Construction Technology and Management were among the MDAs with the highest flagged amounts in different categories.

The sheer volume of funds involved—N124.12 billion—and the broad participation of numerous MDAs suggest that these are not isolated incidents but rather indicative of broader challenges in federal government procurement irregularities.

The Auditor-General for the Federation has brought to light significant financial discrepancies, identifying contract and procurement irregularities totaling N124.12 billion across various federal government Ministries, Departments, and Agencies (MDAs). These findings are detailed in the Auditor-General for the Federation’s 2024 Annual Report on Non-Compliance/Internal Control Weaknesses in MDAs of the Federal Government for the year ended December 31, 2024. This comprehensive report, officially dated July 17, 2026, was subsequently transmitted to the National Assembly, fulfilling constitutional requirements for the audit of public accounts.

A closer examination of the report reveals three primary categories of infractions contributing to this substantial sum. The largest component, amounting to N76.96 billion (specifically N76,958,057,980.52), pertains to irregularities in the actual award of contracts by 29 different MDAs. Additionally, N19.91 billion (specifically N19,908,516,621.74) was flagged for contracts awarded in direct violation of established procurement due process, involving 15 MDAs. The remaining N27.25 billion (specifically N27,252,254,217.24) represents payments made by MDAs for services or contracts that were either not executed at all or were not performed to the required standards. These figures underscore a widespread pattern of non-compliance within Nigerian MDA contract compliance.

The report meticulously outlines the specific regulatory frameworks that were breached. For the N76.96 billion identified in irregular contract awards, the Auditor-General cited Paragraph 2921(i) of the Financial Regulations 2009. This regulation mandates that, unless explicitly exempted under the Procurement Act, all procurement of goods, works, and services must be conducted through open competitive bidding. It further stipulates that contractors and suppliers must be subjected to uniform conditions, including standardized bid submission formats, deadlines, and predetermined evaluation criteria. Among the 29 MDAs implicated in this category, the National Population Commission recorded the highest amount of N10.97 billion in flagged contracts, while the Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development had the lowest at N5.91 million.

Regarding the N19.91 billion in contracts awarded without adhering to due process, the audit referenced provisions of the Public Procurement Act 2007. This Act clearly assigns responsibility to accounting officers and officials of procuring entities for ensuring compliance with legal requirements. It also mandates that procuring entities secure approval from the appropriate authority before making any contract award. The National Agricultural Land Development Authority was responsible for the largest share in this category, accounting for N14.70 billion, which represents approximately 74 percent of the total, across 15 MDAs. The Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development again featured, this time with the lowest amount of N18.58 million.

Furthermore, the N27.25 billion paid for unexecuted or improperly executed jobs directly contravenes Paragraph 708 of the Financial Regulations 2009. This regulation unequivocally states that payments should not be made for services not yet performed or for goods not yet supplied. It also requires payment vouchers to contain comprehensive details and relevant supporting documentation, emphasizing that government officials responsible for expenditure must exercise due economy in the spending of public funds. The National Institute of Construction Technology and Management, located in Uromi, Edo State, was responsible for the highest amount in this category, totaling N11.36 billion, which constitutes about 42 percent of the flagged sum.

The Auditor-General for the Federation report serves as a critical indicator of the state of financial governance and Nigerian MDA contract compliance within the federal government. Its transmission to the National Assembly, as constitutionally required for public accounts audits, underscores the legislative body's role in overseeing executive financial conduct. The detailed findings, spanning irregular contract awards, Public Procurement Act 2007 violations, and payments for unperformed work, highlight systemic weaknesses in internal controls and adherence to established procurement guidelines.

This comprehensive audit, covering the year ended December 31, 2024, and dated July 17, 2026, provides a clear mandate for enhanced scrutiny and corrective action. The sheer volume of funds involved—N124.12 billion—and the broad participation of numerous MDAs suggest that these are not isolated incidents but rather indicative of broader challenges in federal government procurement irregularities. The report effectively signals a heightened need for accountability and stricter enforcement of the Financial Regulations 2009 Nigeria and the Public Procurement Act 2007 to safeguard public funds and ensure efficient service delivery.

This report signals heightened scrutiny on public procurement and contract execution within Nigerian MDAs. Lawyers advising contractors or government entities must review compliance with the Public Procurement Act 2007 and Financial Regulations 2009 to mitigate risks of flagged irregularities and potential sanctions.

Source: Original reporting via Sunday PUNCH