A recent audit report has revealed alarming financial irregularities in Nigeria’s Federal Ministry of Works (Housing Sector), with an estimated N4.64 billion in questionable transactions pointing to systemic breaches of procurement and financial laws. The findings, from the Auditor-General for the Federation’s Annual Report covering 2020-2021, highlight widespread lapses in internal control during the tenure of former Minister Babatunde Fashola.
The report outlines multiple concerns, including payments made without proper documentation, unauthorized expenditures, excessive mobilisation fees, and contract awards circumventing due process. Among the irregularities, N1.08 billion was withdrawn from the Government Integrated Financial Management Information System account without corresponding payment vouchers, contravening Financial Regulations. Additionally, N546 million was transferred without documentation or budgetary backing, underscoring what the Auditor-General describes as weak internal oversight.
Highlighting the ministry’s lack of response to audit queries, the Auditor-General called for accountability measures, recommending that the Permanent Secretary justify these payments, recover unauthorised funds, and provide evidence of compliance to the National Assembly’s Public Accounts Committees. Failure to comply would trigger sanctions as prescribed by the Financial Regulations.
The report also reveals N2.89 billion in extra-budgetary spending, with over N1 billion allocated to contractors for road projects in Katsina State despite lacking legislative appropriation. This expenditure contravenes Section 80(4) of the 1999 Constitution, which mandates legislative oversight for public fund withdrawals. Payments made to non-incorporated companies compound the issue, with contracts worth N493.97 million awarded to unregistered entities, violating the Public Procurement Act of 2007 and the Companies and Allied Matters Act, 2020.
The audit cited an example where a contract awarded in 2016 was executed by a company only incorporated three years later in 2019. Payments exceeding the 15% limit on mobilisation fees were also flagged, with a contract in Oyo State breaching prescribed financial thresholds, heightening concerns over procedural compliance and fund misallocation. Furthermore, a classroom construction contract in Edo State, valued at N46.31 million, bypassed due process, with nearly 88% of the sum paid upfront to the contractor.
In the wake of these findings, the Senate has expressed intent to enforce parliamentary sanctions against any government agency heads implicated in the report. Senator Garba Madoki, Chairman of the Senate Committee on Legislative Compliance, emphasised the need for accountability and compliance, underscoring the Senate’s readiness to pursue repercussions for disregard of its summons and resolutions.
The Auditor-General’s findings cast a stark light on the Ministry of Works’ financial governance, stressing the need for urgent reforms to curb further mismanagement and protect public resources from abuse.
