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A total of ₦1.411 trillion, representing the October 2024 Federation Accounts Revenue, has been shared between the Federal Government, States, and Local Government Councils (LGAs).
In a statement released by the Office of the Accountant General of the Federation on Wednesday, it was revealed that the funds were allocated during the November 2024 meeting of the Federation Accounts Allocation Committee (FAAC) in Bauchi State, chaired by the Accountant General, Dr. Oluwatoyin Madein.
The meeting followed the 2024 National Council on Finance and Economic Development (NACOFED), hosted by the Bauchi State Government.
The total distributable revenue of ₦1.411 trillion included ₦206.319 billion in distributable statutory revenue, ₦622.312 billion from Value Added Tax (VAT), ₦17.111 billion from the Electronic Money Transfer Levy (EMTL), and ₦566.000 billion from Exchange Difference revenue.
According to a communiqué issued by FAAC, the gross revenue for October 2024 stood at ₦2.668 trillion, with deductions for collection costs amounting to ₦97.517 billion and transfers, interventions, and refunds totaling ₦1.159 trillion.
The communiqué also highlighted that the gross statutory revenue for October 2024 amounted to ₦1.336 trillion, which represents an increase of ₦293.009 billion from the ₦1.043 trillion recorded in September 2024.
For VAT, ₦668.291 billion was available in October 2024, marking an increase of ₦84.616 billion from the previous month’s ₦583.675 billion.
Of the ₦1.411 trillion distributable revenue, the Federal Government received ₦433.021 billion, while State Governments were allocated ₦490.696 billion.
Local Government Councils received ₦355.621 billion, and ₦132.404 billion (13% of mineral revenue) was distributed to benefiting states as derivation revenue.
From the ₦206.319 billion in statutory revenue, the Federal Government received ₦77.562 billion, the States got ₦39.341 billion, and the LGAs received ₦30.330 billion. Additionally, ₦59.086 billion (13% of mineral revenue) was shared among benefiting states.
The ₦622.312 billion VAT revenue was divided with the Federal Government receiving ₦93.347 billion, States getting ₦311.156 billion, and Local Government Councils receiving ₦217.809 billion.
From the ₦17.111 billion EMTL, the Federal Government received ₦2.567 billion, States received ₦8.555 billion, and LGAs were allocated ₦5.989 billion.
Regarding the ₦566.000 billion in Exchange Difference revenue, the Federal Government received ₦259.545 billion, States received ₦131.644 billion, and Local Government Councils received ₦101.493 billion. Derivation revenue for benefiting states amounted to ₦73.318 billion (13% of mineral revenue).
In October 2024, key revenue sources such as Oil and Gas Royalty, Excise Duty, VAT, Import Duty, Petroleum Profit Tax (PPT), and Companies Income Tax (CIT) saw significant increases, while EMTL and CET Levies experienced notable decreases.
A court in the British Virgin Islands has authorized Chinese investors, Zhongshan, to seize £20 million ($25 million) from Nigeria’s foreign-denominated assets due to a failed Ogun trade zone agreement dating back to the early 2000s, during the tenure of then-Governor Ibikunle Amosun.
On November 8, Justice Paul Webster of the British Virgin Islands High Court ruled that Nigeria could not claim immunity from the enforcement of an arbitral award in favor of Zhongshan.
The decision was based on the bilateral investment treaty between China and Nigeria, which included a clause stipulating that both nations must enforce arbitration awards.
According to Peoples Gazette, the judge interpreted this clause as Nigeria’s written consent to enforcement under the treaty, thus enabling Zhongshan to pursue judgment debt collection.
Justice Webster cited Section 13(3) of the State Immunity Act 1978, mandating the British Virgin Islands to permit Zhongshan to recover the debt from Nigeria’s assets in the UK.
This judgment is part of a growing list of legal setbacks Nigeria has faced internationally. Courts in France, Belgium, Canada, the United States, and other jurisdictions have also dismissed Nigeria’s sovereign immunity arguments, consistently ruling in favor of Zhongshan.
Zhongshan’s legal team, led by King’s Counsel Timothy Otty and Lauren Peaty of Withers British Virgin Islands, claimed the Ogun trade zone deal was unilaterally terminated by Amosun’s administration.
They alleged that their representatives were detained and tortured under the former governor’s orders, prompting them to seek justice in foreign courts.
In a bid to enforce a $70 million arbitral award, Zhongshan targeted Nigeria’s dollar-denominated crude earnings held in JP Morgan accounts in the United States.
While U.S. courts rejected Nigeria’s sovereign immunity claims, the matter is now pending before the U.S. Supreme Court, following Nigeria’s November 7 filing for a writ of certiorari. Until the Supreme Court makes a decision, Zhongshan’s access to these funds remains delayed.
Meanwhile, the Chinese investors have begun seizing Nigeria’s overseas assets, including two guest houses in Liverpool and aircraft in France and Canada, to recover the debt.
Mr. Amosun, who signed the controversial contract, has faced public criticism for his role in the debacle.
In August, he admitted to failing to verify Zhongshan’s claims before entering the agreement, describing their assertions as false.
The Edo State Governor, Monday Okpebholo, has approved the dissolution of the Governing Councils of all state-owned tertiary institutions, including Ambrose Alli University, Ekpoma.
In the same vein, the governor has also approved the disengagement of the management staff of Edo Specialist Hospital and Stella Obasanjo Hospital, Benin City, with immediate effect.
Both approvals were conveyed in a government special announcement dated November 20, 2024, and signed by the Secretary to the State Government, Umar Ikhilor.
This was disclosed in a statement on Wednesday signed by the Chief Press Secretary to Edo State Governor, Fred Itua.
The statement read, “It is hereby announced for the information of the General Public that the Governor of Edo State, Senator Monday Okpebholo, has approved the dissolution of the governing councils of all state-owned tertiary Institutions in Edo State with immediate effect.
“Accordingly, all affected members of the governing councils of all State-owned tertiary Institutions are to hand over all government properties in their possession to their respective heads of the institutions.
“It is hereby announced for the information of the General Public that Governor Okpebholo has approved the disengagement of the management Staff of Edo Specialist Hospital and Stella Obasanjo Hospital, Benin City, with immediate effect.
“In view of the above, the management staff of the aforementioned hospitals are to hand over all government properties in their possession to the most senior officer in their various Institutions.”
The Independent National Electoral Commission (INEC) has presented certificates of return to Ondo State Governor-elect, Lucky Aiyedatiwa, and his deputy, Adelami Olayide, marking the formal conclusion of the electoral process.
The certificates were handed over on Wednesday in Abuja by the Supervisory National Commissioner for Ondo State, Prof. Kunle Ajayi, four days after INEC declared Aiyedatiwa the winner of the governorship election held last Saturday.
Aiyedatiwa, the candidate of the All Progressives Congress (APC), emerged victorious with 366,781 votes, decisively defeating the Peoples Democratic Party (PDP) candidate, Agboola Ajayi, who garnered 117,845 votes.
The APC candidate secured victory in all 18 local government areas of the state, reinforcing the party’s dominance in Ondo.
However, the election results have been rejected by the PDP and its candidate, Agboola Ajayi, who alleged irregularities in the process. The opposition party has vowed to challenge the results in court, claiming its mandate was stolen.
Ajayi, a former Deputy Governor, accused the All Progressives Congress (APC) and INEC of engaging in widespread electoral malpractice to manipulate the election outcome.
In a statement issued by his Special Adviser, Ayo Fadaka, Ajayi alleged that his investigation into the election process uncovered “contents of criminality prosecuted by both APC and the INEC.”
The Nigerian Senate on Wednesday, sacked Danladi Usman as the Chairman of the Code of Conduct Tribunal (CCT).
The sack of Danladi follows the closed-door session of the lawmakers in which 84 out of the existing 107 serving Senators, signed for removal of the embattled CCT Chairman.
The Senate invoked section 157(1) of the 1999 constitution which stipulates that 2/3 of the membership of the Senate can remove the head of any statutory body alleged to have indulged in gross misconduct and misdemeanour in office.
Details later…
The United Kingdom’s consumer price index (CPI) rose to 2.3 percent in October from 1.7 percent in September.
The UK Office for National Statistics (ONS), attributed the increase to rising energy prices.
On a month-on-month basis, the CPI rose by 0.6 percent in October this year — up from 0.1 percent in October 2023, the ONS said.
The office also said the consumer prices index, including owner occupiers’ housing costs (CPIH), rose by 3.2 percent in the 12 months to October — up from 2.6 percent in September.
“The largest upward contribution to the monthly change in both CPIH and CPI annual rates came from housing and household services, mainly because of electricity and gas prices; the largest offsetting downward contribution came from recreation and culture,” the statistics firm said.
“Monthly housing and household services prices rose by 1.3% in October 2024, having fallen by 0.3% last year.
“The annual rate rose to 5.5%, up from 3.8% in the year to September. The rise in the divisional annual rate is mainly because of electricity prices, with a sizeable contribution from gas too.
“This reflects the rise of the Office of Gas and Electricity Markets (Ofgem) energy price cap in October 2024, described on the Ofgem website. Ofgem estimates that for an average household paying by direct debit for dual fuel, this equates to £1,717, a rise of £149 on an annual bill.”
The ONS said food and non-alcoholic beverage prices rose by 1.9 percent in October — slightly up from the 1.8 percent in September 2024.
Speaking on the inflationary movement in the country, Grant Fitzner, ONS’ chief economist said while higher energy costs contributed, the increase was offset by falls in live music and theatre ticket prices.
“The cost of raw materials for businesses continued to fall, once again driven by lower crude oil prices,” Fitzner added.
On November 7, the Bank of England (BoE) had predicted that inflation would rise from 1.7 percent in September to 2.5 percent by the end of the year and not return to its 2 percent target until mid 2027 — a year later than it previously thought.
The Head of the Civil Service of the Federation, Didi Walson-Jack, has introduced a digital platform designed to improve access to government circulars for civil servants across the country.
At the unveiling event in Abuja on Wednesday, Walson-Jack highlighted the significance of circulars as critical instruments for effective governance and administration within the civil service.
“Circulars provide direction, clarify policies, and ensure that decisions are communicated consistently across the Service. However, a recurring challenge has been the accessibility and retention of these critical documents, especially as time passes and administrations change. This has, at times, hindered institutional memory and disrupted seamless service delivery,” she explained.
The new portal, she emphasized, aims to address these challenges by promoting transparency, efficiency, and effectiveness in the civil service.
“This online compendium of Civil and Public Service Circulars will significantly enhance the civil service’s efficiency, transparency, and effectiveness, directly supporting our goals of a more responsive Service.
“The compendium will improve access and reduce administrative bottlenecks, advancing the overarching goals of efficiency, accountability, and improved service delivery,” Walson-Jack stated.
She further underscored the initiative as a reflection of the government’s dedication to modernising public service operations.
“This compendium is more than a technological upgrade; it is a declaration of our determination to adapt, innovate, and lead. It reflects our belief that a modern Civil Service is not just about what we do but how we do it. It demonstrates our unwavering commitment to transparency, accountability, and excellence in governance,” Walson-Jack added.
A bill seeking to amend the Constitution and provide opportunities for Nigerians in the diaspora to vote has passed its second reading in the House of Representatives.
The bill, co-sponsored by Speaker Abbas Tajudeen and Sodeeq Abdullahi, aims to amend the 2022 Electoral Act to include provisions for diaspora voting, potentially enfranchising millions of Nigerians living abroad.
During Wednesday’s plenary, the lawmakers debated the importance of expanding voting rights to include Nigerians residing outside the country. Speaker Tajudeen described the initiative as a vital step toward inclusive democracy.
The bill, which previously passed its second reading in July, was referred to the Committee on Electoral Matters for detailed legislative review. Following further debate on Tuesday, it has now been forwarded to the Constitution Amendment Committee for additional scrutiny.
In other news, the Senate is expected to approve President Bola Tinubu’s $2.2 billion (approximately N1.77 trillion) external loan request today (Wednesday).
The loan, part of the external borrowing plan, is aimed at financing the N28.7 trillion 2024 budget, specifically to address the ₦9.7 trillion budget deficit.
President Tinubu’s request was conveyed in separate letters read during Tuesday’s plenary sessions in both the Senate and the House of Representatives.
The president justified the loan as necessary for partially financing the deficit while implementing key government programs.
In response to the letter, Senate President Godswill Akpabio directed the Senate Committee on Local and Foreign Debts to review the request and submit its report within 24 hours.
South Africa has taken over the leadership of the G20 during a handover ceremony at the Rio de Janeiro summit in Brazil.
Brazilian President Luiz Lula da Silva handed over the reins of leadership to Cyril Ramaphosa, the South African president, on Tuesday.
South Africa is the only African country in the G20 and will be the host of the 2025 summit.
“We will use this moment to bring the development priorities of the African continent and the Global South more firmly onto the agenda of the G20,” Ramaphosa told his counterparts at the summit.
The South African president said his administration would prioritise inclusive economic growth, industrialisation, employment, and inequality.
“The second priority is food security,” Ramaphosa added. “The third priority is artificial intelligence and innovation for sustainable development.”
“As South Africa, we undertake to advance the work of the G20 towards achieving greater global economic growth and sustainable development. We will work to ensure that no one is left behind.”
Ramaphosa said he is looking forward to welcoming global leaders to South Africa next year.
WHO IS IN THE G20?
The G20, originally a collection of 20 of the world’s largest economies, was conceived as a bloc that would bring the most important industrialized and developing economies together to discuss international economic and financial stability.
Since 2008, the G20’s annual summit has evolved into a major forum for discussing economics as well as other pressing global issues.
Bilateral meetings on the summit’s sidelines have occasionally led to major international agreements.
The forum comprises 19 countries, the European Union (EU) and, as of 2023, the African Union (AU).
Member countries include Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom (UK), and the United States.
Spain is invited as a permanent guest.
Nigeria underdeveloped because youths are not taught productive skills in school - Peter Mbah
AFOLABI
Peter Mbah, governor of Enugu state, says Nigeria is underdeveloped because youths are not taught productive skills in school.
The governor spoke on Tuesday while delivering the first Enugu State University of Science and Technology (ESUT) distinguished personalities lecture series.
The lecture was titled “Experiential learning: Building the wealth of the nation.”
Mbah said Nigeria’s current education model and spending could not deliver the much-needed speedy development and economic transformation.
The governor said there was a need for an urgent paradigm shift from memorisation to experiential learning.
“Why do Nigerian universities seldom feature on the global ranking list of the world’s best universities? Why have they seemed perennially unable to become the ideas factory that universities ought to be? Why are our universities not producing inventive graduates?” he asked.
“The answers to these questions lie in many inconvenient truths, amongst which is the fact that the learning in our schools, from basic to tertiary, has for years not imbued our young people with productive skills and competencies.
“This is a root cause of our underdevelopment.”
Mbah also directed all state-owned tertiary institutions to “deliver experiential learning henceforth”.
“So, we hereby announce as a policy that all state-owned tertiary institutions in Enugu state must henceforth deliver experiential learning to our children,” he said.
“We want to see this change reflected in planning, budget, curriculum reform, assessment, and promotions, as well as research.
“Experiential learning ensures that education is deeply connected to the challenges and opportunities of the real world.
“It fosters critical thinking, creativity, and collaboration. It empowers students to see themselves not as passive learners but as active problem-solvers.”
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The Federal Government on Tuesday revealed a plan to establish a National Youth Development Bank and a Youth Data Bank.
President Bola Tinubu, represented by his Vice, Kashim Shettima, disclosed this at a Stakeholders Roundtable on Northern Youth Development organised by the Sir Ahmadu Bello Memorial Foundation, in Abuja.
The President described the banks as crucial tools for “providing financial and informational support to young Nigerians.”
He said since his assumption of office, his administration unveiled a comprehensive youth development strategy spanning multiple key sectors to drive Nigeria’s economic transformation.
Tinubu extolled the legacy of the late Sardauna of Sokoto and former Premier of Northern Nigeria, Ahmadu Bello.
” The late Sir Ahmadu Bello, the Sardauna of Sokoto, was one of the towering giants on whose shoulders we have ascended as a nation.
” His vision was clear: the North cannot progress in isolation, and Nigeria cannot prosper unless every part of this nation thrives,” he said.
Tinubu declared that the development of Northern Nigeria remains fundamental to the nation’s prosperity.
According to him, “whatever disrupts the growth of one region sets back the entire nation.
“For far too long, we have been taunted as a nation with the most children out of school—a reality that should not elicit pride but provoke urgent action.
“This alarming statistic has turned the promise of our population into a challenge rather than the dividend it ought to be,” he added.
Tinubu re-echoed his administration’s pioneering youth development initiatives, including the Three Million Technical Talent (3MTT) programme and the Presidential Initiative for Youth Enterprise Clusters.
“Our creative and digital economy is another goldmine,” the President said, outlining programmes such as the Skill-Up Artisans Programme (SUPA), Nigerian Youth Academy (NIYA), and the National Youth Talent Export Programme (NATEP).
He listed other programmes including the Nigeria Education Loan Fund (NELFUND) for higher education access, Investment in Digital and Creative Enterprises (iDICE) for digital entrepreneurship.
They also included, Outsource to Nigeria Initiative (OTNI) for global market participation, Youth Enterprise Clusters for business development, and the Renewed Hope Housing Scheme to address accommodation needs.
On agriculture, the President said that investments in the sector and industrialisation would further position the North as Nigeria’s foremost agricultural hub.
Addressing the region’s security challenges, Tinubu further outlined measures “to restore stability to the North.
” The measures include strengthening community policing, rehabilitating displaced persons, and addressing cross-border challenges like smuggling and insurgency.”
He emphasised the urgency of the moment, saying ” By 2050, Nigeria will become the third-largest nation globally, with three-quarters of our citizens under the age of 21.
“Our challenge here is to engineer a transition towards a federation defined by order, stability, and safety,” he added, noting that “this task is both urgent and achievable.”
The President also made a direct challenge to young Nigerians: “You are not just the future of this nation—you are its present.
” Your energy, ideas, and determination are already shaping our policies and programmes.”
“Our commitment is to provide you with the skill set and opportunities to thrive in a competitive world”.
He assured that the administration would unlock the potential of the Nigerian youth, ensuring that their dreams transform the country into an enduring symbol of democracy, development, and progress.
Speaking in the same vein, the Sultan of Sokoto, Sa’ad Abubakar III, emphasised the critical role of youth education in national development.
‘ Our youths are the foundation of any development we envisage in our society. They are not just leaders of tomorrow but leaders of today,” he said.
The Sultan further highlighted the importance of continuous dialogue with the youth, stating that “forums like this must be held continuously to dialogue with our youths across the northern states.”
He emphasised the primacy of education, asserting that it “is the strongest legacy any leader can leave to society.
“Without education, you are a nobody. I believe in infrastructural development like roads and bridges but more money should be spent educating our children.
“That is why we need to dwell more on how we can ensure that our children are educated.”
Earlier, the Chairman of the foundation’s Board of Trustees, Muazu Babangida, noted that the event marked the foundation’s 15th anniversary
The Naira appreciated on Tuesday at the official market, trading at N1,678.93 against the dollar and recovering from a three-day trading loss.
Data from the official trading platform of the FMDQ Exchange, revealed that the Naira gained N11.44.
This represents a 0.67 per cent gain when compared to the previous trading date on Monday when it exchanged at N1,690.37 to a dollar.
Similarly, the Naira yesterday appreciated to N1,730 per dollar in the parallel market from N1,735 per dollar on Monday.
However, the total daily turnover reduced to 128.59 million dollars on Tuesday down from 173.14 million dollars recorded on Monday.
At the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,698 and N1,631 against the dollar.
(NAN)
The Dangote Petroleum Refinery has begun the export of refined petroleum products to neighbouring West African countries, a sign to traders that the mega-refinery’s operations could soon potentially shake up regional fuel markets.
A report by Bloomberg on Tuesday, quoting data sourced from Vortexa, Kpler, Precise Intelligence, a port report, and ship-tracking platform, said a tanker has hauled a shipment of gasoline from the Dangote Petroleum Refinery to waters off the coast of Togo, a neighbouring West African country.
The report said a CL Jane Austen recently loaded more than 300,000 barrels from Dangote and sailed west.
Recall that last month, the chairman of the Ghana National Petroleum Authority, Mustapha Abdul-Hamid, said the country is considering buying petroleum products from the Dangote refinery to help the country cut more expensive exports from Europe which cost the country about $400m monthly.
The chairman of NPA, Ghana, who spoke at the OTL Africa Downstream Oil Conference in Lagos, said importing from Nigeria rather than Europe would reduce the prices of other goods and services by removing freight costs.
“If the refinery reaches 650,000bpd a day capacity, all that volume cannot be consumed by Nigeria alone, so instead of us importing as we do right now from Rotterdam, it will be much easier for us to import from Nigeria and I believe that will bring down our prices,” Hamid said.
Similarly, The PUNCH exclusively reported two weeks ago that the refinery was set to begin fuel exports to South Africa, Angola, and Namibia.
It added that four other African countries – Niger Republic, Chad, Burkina Faso, and Central Africa Republic – had also started negotiations with the refinery.
A highly credible source, who confirmed this exclusively to one of our correspondents, said the management of the 650,000bpd capacity refinery was at the advanced stages of talks with the countries to start lifting fuel.
“I can confirm to you that talks are actually at the advanced stage with Ghana, Angola, Namibia, and South Africa, while the initial discussion is coming up with Niger, Chad, Burkina Faso, and the Central African Republic,” the source said.
The report further stated that the petroleum product shipment is now floating off the coast of Lome, a popular area for ship-to-ship transfers.
It’s also not certain where the CL Jane Austen’s cargo will ultimately end up.
Although it’s off Togo, the area is often used for Ship-to-ship transfers, meaning the fuel could subsequently be taken elsewhere.
“While the shipment is tiny in the context of the global gasoline market, it signals the ramp-up of Dangote’s production and the potential to export significant volumes of gasoline beyond Nigeria, which could upend regional markets.”
The refinery last month shipped its first seaborne gasoline cargo to the nearby commercial hub of Lagos.
Whether large amounts of Dangote’s gasoline output end up being exported remains to be seen.
Last month, the Federal Government ended its state-owned oil company’s monopoly on buying the fuel from the plant for domestic use but has allowed the continued importation of fuel from Europe and the US in line with the regulatory act.
According to the report, a Dangote spokesperson didn’t respond to a request for comments.
An audit report has uncovered financial irregularities totalling over N4.64bn in the Federal Ministry of Works (Housing Sector), raising concerns about systemic non-compliance with financial regulations and procurement laws.
The findings, contained in the Auditor-General for the Federation’s Annual Report, cover activities between 2020 and 2021 and reveal significant lapses in internal controls under Babatunde Fashola, the former Minister of Works and Housing.
The report details several issues, including payments made without proper documentation, extra-budgetary expenditures, mobilisation fees exceeding approved thresholds, and contracts awarded without following due process.
A sum of N1.08bn was paid from the Government Integrated Financial Management Information System account without the requisite payment vouchers, violating Paragraph 601 of the Financial Regulations, 2009.
Also, N546m was transferred to project accounts without adequate documentation or budgetary provision.
The Auditor-General’s report attributed these anomalies to weak internal control mechanisms in the Ministry and warned of risks such as fund misappropriation and loss.
Despite queries, the ministry failed to respond to these issues.
The Auditor-General recommended that the Permanent Secretary justify the payments, recover the funds, and remit them to the Treasury.
The audit report also recommended that evidence of compliance should be submitted to the National Assembly’s Public Accounts Committees, failing which sanctions under Paragraph 3106 of the Financial Regulations should apply.
Extra-budgetary spending
The audit unearthed extra-budgetary expenditures amounting to N2.89bn, including N1.88bn spent without legislative appropriation.
Also, over N1bn was paid to contractors for road projects in Katsina State, which were only included in the 2017 Appropriation Act.
These expenditures contravene Section 80(4) of the 1999 Constitution, which mandates legislative approval for all withdrawals from public funds.
The audit report read, “The sum of N1,883,795,670.51 (One billion, eight hundred and eighty-three million, seven hundred and ninety-five thousand, six hundred and seventy naira, fifty-one kobo) was expended by the Ministry without evidence of appropriation.
“The sum of N1,003,039,708.79 (One billion, three million, thirty-nine thousand, seven hundred and eight naira, seventy-nine kobo) was paid to four contractors for the construction of roads in Daura, Katsina State. The project was budgeted for in the 2017 Appropriation Act, and
“Approval for the extra-budgetary expenditures in (i) and (ii) above, totalling N2,886,835,379.30 (Two billion, eight hundred and eighty-six million, eight hundred and thirty-five thousand, three hundred and seventy-nine naira, thirty kobo) by the National Assembly was not presented for audit.
“The above anomalies could be attributed to weaknesses in the internal control system at the Federal Ministry of Works (Housing Sector).”
The lack of adherence to financial accountability standards raises concerns about the potential diversion of public funds.
No response was provided by the Ministry to clarify these expenditures.
The report called for the recovery of the unauthorised funds and recommended sanctions for those responsible under relevant financial regulations.
The report further revealed contracts worth N493.97m were awarded to companies not registered with the Corporate Affairs Commission.
Of this amount, N170.36m was paid to unregistered entities, and a company awarded a contract in 2016 was only registered in 2019, contravening the Public Procurement Act, 2007, and the Companies and Allied Matters Act, 2020.
The absence of legal registration increases the risk of contract non-execution, fund mismanagement, and payment to ghost entities.
The audit report noted, “Payment for Contracts totalling N493,967,484.24 (Four hundred and ninety-three million, nine hundred and sixty-seven thousand, four hundred and eighty-four naira, twenty-four kobo) were made to non-existing companies.
“The sum of N5,825,989.28 (Five million, eight hundred and twenty-five thousand, nine hundred and eighty-nine naira, twenty-eight kobo) was paid to a contractor vide payment voucher with Ref. No PROC/PBHD/CAP1345/2020 dated 30th December, 2020, out of the total contract sum of N493,967,484.24 without the company being incorporated.
“Three contractors were paid a total of N170,355,961.05 without evidence of incorporation with the Corporate Affairs Commission (CAC).
“A company that was awarded a contract on the 25th of November, 2016 was incorporated with CAC on the 16th of August, 2019.
“The above anomalies could be attributed to weaknesses in the internal control system at the Federal Ministry of Works (Housing Sector).”
The Ministry was advised to recover the funds, ensure remittance to the Treasury, and implement sanctions against officials involved in the irregular awards.
Other financial infractions
The report also noted that in Oyo State, the ministry paid N110.81m, representing 22.61 per cent of a total contract sum, as mobilisation fees for a project, exceeding the 15 per cent limit prescribed by Paragraph 2933 of the Financial Regulations.
The contract was also irregularly awarded on a Sunday, further raising concerns about procedural integrity.
The report called for the recovery of the excess payment and recommended strict sanctions for gross misconduct under Paragraph 3129 of the Financial Regulations.
Also, a contract worth N46.31m for classroom construction in Edo State was awarded without adhering to due process.
The report further noted that N40.83m, representing 88.18 per cent of the contract sum, was paid to the contractor, exceeding mobilisation thresholds.
The lack of documentation, such as tender evaluations and approvals, exposes the ministry to risks of incomplete projects and fund diversion.
Five contracts worth N27.84m were awarded without obtaining bids from at least three unrelated contractors, as required under Section 24(1) of the Public Procurement Act, 2007.
The ministry also failed to present essential documents, including advertisements, tender evaluations, and meeting minutes.
The Auditor-General’s report paints a grim picture of financial management in the Federal Ministry of Works (Housing Sector), citing pervasive internal control weaknesses, poor compliance, and lack of accountability.
The report stressed the need for urgent reforms to prevent further financial mismanagement and safeguard public funds.
The PUNCH earlier reported that the Senate on Monday vowed to invoke parliamentary sanctions against any head of a Federal Government agency indicted for financial infractions in the report submitted to the National Assembly by the Auditor-General for the Federation.
The Chairman of the Senate Committee on Legislative Compliance, Senator Garba Madoki, gave the warning at a one-day roundtable workshop in Abuja.
Madoki lamented the rate at which heads of the MDAs have been shunning Senate summons and warned that further disregard for the resolutions of the red chamber would no longer be tolerated.