Nigeria lost N557 billion in five years over fraudulent and inefficient management of public funds, according to a report released by Paradigm Leadership Support Initiative (PLSI), a civil society organisation (CSO) on Friday.
According to the report titled “achieving accountability and development in Nigeria”, the said sum was lost from 2013 – 2017.
The report revealed that the loss was a result of several infractions relating to fraudulent award of contracts, non-execution of contracts awarded, inflation of contracts, non-remittance of taxes, diversion of grants among several others.
Olusegun Elemo, an executive director, PLSI speaking at the launch of the report and fifth anniversary of the organisation, decried the lack of transparency and accountability in the utilisation of public funds.
Elemo said the report examined compliance of federal ministries, departments, and agencies (MDAs) of government in Nigeria with Public Procurement Act, Financial Regulations, and other relevant laws over a five-year period to ascertain the level of waste and inefficiency in the utilisation of public funds and the consequent impact on Nigeria’s development. He noted that there have been infractions and abuse of extant laws that set up different agencies of government.
“When procedures are not followed in terms of how funds are managed, it will eventually lead to waste and inefficiency. This denies ordinary Nigerians access to key services to improve their quality of life. Whatever we do in expending public funds, it must reflect on the lives of ordinary citizens”, Elemo said.
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The director again called on the Nigerian government to speed up the process of enacting modern audit laws to limit waste and inefficiency in management and utilisation of public funds in the country.
The director said among several recommendations proposed by the organisation to reduce loss of public funds on the part of the federal government, the immediate enactment of modem audit law stands out as a priority without which accountability and development will not be achieved.
Osonuga Adedeji, the researcher while presenting the report also highlighted some observations, including contravention of provisions of Financial Regulations (2009) and some Treasury Circulars by many MDAs. Weak internal control system, misappropriation and misapplication of fund, virement of funds without the approval of the National Assembly, payment without vouchers and supporting documents, non-collection of appropriate taxes among others.
Adedeji noted that 84 million Nigerians live below poverty line and 53 million more vulnerable due to the COVID-19 pandemic and could fall into poverty. He equally decried the continued inefficient use of fiscal resources by the Nigerian government.
Polycarp Gbaja, the PLSI board chair who also spoke at the event said the organisation has worked hard over the last five years to ensure public funds are adequately accounted for especially at the federal level.
“While our organisation is looking to transferring some of the gains we’ve recorded with our work at the federal level to subnational governments in Nigeria, it must be emphasised that the task of fostering accountability in the management and utilisation of public funds has never been easy, but we are committed to it, and we will continue to ensure that accountability necessary for good governance and development of Nigeria becomes a norm,” he said.
The report recommended steps to be taken by the government to reduce infractions, which include improving skills for performance and accountability in the public service as well as improving corporate governance by the Boards of government statutory corporations, companies, and commissions otherwise called parastatals.
It also recommended stiffer penalties for violation of laws and extant regulations, among others.
