While Nigeria goes cap in hand across the globe in search of lenders to fund its unending budget deficits, reports by the Office of the Auditor-General of the Federation (OAuFG) reveal an endemic culture of waste and corruption among government ministries, departments, and agencies (MDAs).
The just-released audit report on the Federal Government’s Consolidated Financial Statement for the year ended 31st December 2021 has indicted three major agencies for huge financial infractions and non-remittance of revenue to the federation account during the year under review.
The agencies involved are the Nigeria National Petroleum Company Limited (NNPCL), the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), and the Nigeria Downstream and Midstream Regulatory Authority (NDMRA).
The report, prepared by the Office of the Auditor-General of the Federation and submitted to the Clerk to the National Assembly, cited cases of unauthorised deduction from the federation revenue, irregular deduction from domestic crude sale, warehousing of the federation’s miscellaneous income, unsubstantiated payment of a shortfall from the sale of MT cargo of PMS, outstanding royalties due from NNPC-COMD/MCA/PSC, and unjustified deductions from joint venture royalty by NNPC before remitting to DPR.
Also mentioned as financial irregularities in the report are outstanding royalties on oil concession rentals and gas flaring payable by operators to the federation’s account, outstanding bridging allowance from NNPC Retail, outstanding bridging claims from other major oil marketers, an irregular balance in marketers’ indebtedness, and non-payment of indebtedness by some DAPPMAN marketers.
The Auditor General for the Federation, Shaakaa Kanyitor China, who signed the report, said the actions of the three state-owned agencies were in violation of paragraph 213(ii) of the Financial Regulations (FR) and paragraph 217 of the FR 2009.
An earlier report by the OAuFG had exposed irregular payments for contracts totalling over N197.72 billion across various MDAs, raising serious concerns about systemic lapses in financial compliance and procurement processes.
They reveal violations of established financial regulations and procurement laws during 2020–2021, with irregularities affecting multiple MDAs.
The breaches that occurred in 32 MDAs detail several issues, including payments made without proper documentation, extra-budgetary expenditures, mobilisation fees exceeding approved thresholds, and contracts awarded without following due process.
The OAuGF is a government institution whose role is to scrutinise the public sector to see to it that there has not been any wastage of taxpayers’ money and that the government delivers services in an equitable, efficient, and effective manner for the benefit of all the citizenry.
It reports to the National Assembly. The OAuGF has “Enhance good governance and public accountability through the conduct of audits to ensure better financial management and optimum use of public resources to maintain sustainable development” as its mission.
In reality, the outcome of its activities has yielded nothing but the opposite, even under the President Muhammadu Buhari-led administration which came into office on the mantra of change and eradicating corruption.
For instance, a report of the AuGF in July 2018 disclosed that more ministries, departments and agencies (MDAs) violated audit law under Buhari than previous governments. “More ministries, departments and agencies (MDAs) have refused to submit their accounts for review since President Muhammadu Buhari assumed office.
“The poor compliance of MDAs to Nigerian laws on submission of accounts is worse in each of Mr Buhari’s first two years in office than any previous year since Nigeria returned to democracy from military dictatorship in 1999,” the report stated.
For close watchers of the government, the succession process at the OAuGF has generated little public attention. This is because the establishment is seen as one engrossed in the adroit generation of routine reports that have not brought any material change.
The audit reports have exposed many leakages that threaten the country’s finances and most of these leakages are man-made holes. These holes are dug by MDAs with either outright disregard for transparency and accountability or an inability to grasp the impact of their carelessness on the citizens they have been appointed to serve.
The Senate President during the 9th National Assembly, Ahmed Lawan said, “This is one of our major responsibilities as a Parliament to hold the executive to account and whoever is given the responsibility and the trust of running any agency with public funds must be accountable to the Parliament on behalf of the people.
“This Senate will insist any public servant or civil servant that is given public funds for public good and has questions to answer and refuses to appear to answer should have no business in government because all of us are supposed to be accountable to the people.
“Therefore, if someone thinks he’s not going to be accountable, then that person has no business remaining in office.” This turned out to be a mere display of words with no sincere intentions.
For a cash-strapped country, the AuGF’s report should be a critical tool for salvaging the nation and averting impending fiscal implosion. The National Assembly which is culpable in the humongous leakages of public funds, should wear a garment of new heart for the survival of the country.
With a total public debt profit of N121.67 trillion as of June 2024 and a debt-to-revenue ratio of 65 percent, mere brandishing of audit reports that would not lead to tackling the identified problems or bringing errant public servants to book is nothing but a ceremonial display of the routing act.
Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.
