The Office of the Auditor-General for the Federation has identified significant financial irregularities at the National Power Training Institute of Nigeria in Abuja. According to the 2024 Annual Report on Non-compliance, the institute has failed to remit N2.77bn in tender fees to the Consolidated Revenue Fund. The report, which covers the period between January 1, 2022, and December 31, 2023, highlights various instances of financial mismanagement and non-compliance with government regulations.
The audit report reveals that the institute made several payments without proper documentation or evidence of delivery. For instance, N547.21m was paid for the procurement of store items in 11 transactions, but no evidence of delivery or Store Receipt Vouchers was provided. This lack of documentation poses a risk of payment for goods not supplied and possible diversion of public funds. The report recommends that the institute's Director-General account for the payments and recover the funds.
The institute also made payments for constituency projects without following proper procedures. N196.59m was spent on three projects involving electricity transformers and solar streetlights in Ogun, Lagos, and Osun states. However, the institute failed to provide evidence of the contractors' eligibility to execute the contracts, and the projects were not monitored or certified by the Federal Ministry of Special Duties and Intergovernmental Affairs. The report recommends that the Director-General account for the payments and remit the funds to the Treasury.
In addition to these findings, the audit report notes that the institute under-remitted N4.12m in Value Added Tax from 21 contracts worth N136.86m. The expected 7.5% VAT amounted to N10.26m, but only N6.14m was remitted to the relevant tax authority. The report also identifies other irregularities, including N29.65m spent on duty tour allowances, sitting allowances, and honoraria, which were charged to the constituency project account without proper approval.
The Auditor-General's report highlights several other instances of financial mismanagement, including N24.4m in administrative charges incorporated into bills of quantities without evidence of approval or utilization. The report also notes that the institute failed to provide critical documents, including its trial balance, general ledger, and remittance inflows and outflows statement. The absence of these documents limited audit verification and undermined accountability and transparency.
The report recommends that the Director-General of the institute account for the non-provision of records before the National Assembly's Public Accounts Committees and submit the outstanding documents for verification. The Auditor-General also warned of risks, including loss of public funds, revenue leakage, and payments unsupported by adequate documentation. The report cited weaknesses in the institute's internal control system and recommended sanctions under the Financial Regulations if the recommendations are not implemented.
The National Power Training Institute of Nigeria has been tasked with recovering and remitting the irregularly spent funds to the Treasury. The institute's management did not respond to the findings, leaving the audit observations unresolved pending implementation of the recommendations. The Auditor-General's report emphasizes the need for improved accountability and transparency in the management of public funds.
Key points
- The National Power Training Institute of Nigeria failed to remit N2.77bn in tender fees to the Consolidated Revenue Fund.
- The institute made payments for constituency projects without following proper procedures, including N196.59m spent on electricity transformers and solar streetlights in three states.
- The institute under-remitted N4.12m in Value Added Tax from 21 contracts worth N136.86m.
