Fifteen Federal Ministries, Departments and Agencies in Nigeria breached procurement rules in the award of contracts valued at N19.91 billion. The infractions were contained in the Auditor-General’s 2024 Annual Report on Non-Compliance, Volume One. The report identified contracts awarded by the affected MDAs in violation of prescribed procurement due process. The Auditor-General for the Federation made this disclosure, highlighting the scale of procurement concerns across federal institutions.
The National Agricultural Land Development Authority, Abuja, recorded the highest value of contracts affected by the breaches, with N14.70 billion. This accounted for a substantial portion of the total value of contracts identified under the due-process category. The Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development recorded the lowest value of contracts in this category, at N18.58 million. The Auditor-General’s findings are part of a broader assessment of procurement compliance across federal institutions.
The report also identified irregularities in the award of contracts valued at N76.96 billion involving 29 MDAs. The combined value of contracts affected by the two categories of procurement infractions is N96.87 billion. The audit findings were based on an assessment of compliance with provisions governing public procurement and financial management. The Auditor-General cited provisions of the Public Procurement Act 2007, which place responsibility on accounting officers for actions or omissions relating to compliance with procurement requirements.
According to the report, Paragraph 2921(1) of the Financial Regulations 2009 requires public entities to adopt open competitive bidding in the procurement of goods, works and services. This ensures a level playing field for prospective contractors and promotes transparency, competition and fairness in the use of public funds. The requirement is particularly relevant in the award of contracts by government institutions.
The Auditor-General identified recurring weaknesses in internal control systems across several federal institutions. The report described the situation as indicative of “pervasive control deficiencies and institutional lapses.” These weaknesses could undermine effective oversight of public expenditure and require corrective measures to strengthen compliance. The report stressed the need for stronger institutional controls and compliance mechanisms.
The breaches identified across the 15 MDAs raised concerns over adherence to established procedures in the award and execution of public contracts. The Auditor-General urged relevant authorities to address the identified deficiencies, enforce accountability and put measures in place to prevent a recurrence of the infractions. The audit observations and recommendations have been brought to the attention of the Public Accounts Committees of the National Assembly for consideration and appropriate action.
The report said the aggregation of the findings provides the National Assembly and other stakeholders with a consolidated picture of the magnitude, pattern and financial implications of procurement non-compliance across federal MDAs. It stressed the need for stronger institutional controls and compliance mechanisms to ensure that public procurement processes are conducted transparently and in accordance with extant laws and regulations. The Auditor-General’s report aims to promote transparency and accountability in public procurement.
Key points
- The Auditor-General for the Federation disclosed that 15 MDAs breached procurement rules in contracts valued at N19.91 billion.
- The National Agricultural Land Development Authority recorded the highest value of contracts affected by the breaches, with N14.70 billion.
- The Auditor-General urged relevant authorities to address the identified deficiencies and enforce accountability to prevent a recurrence of the infractions.
