Auditor-General Flags ₦100 Billion Financial Breaches at Federal Ministry of Power

Report: Auditor-General Flags ₦100 Billion Financial Breaches at Federal Ministry of Power

1. Introduction

In a significant blow to transparency and fiscal discipline within Nigeria’s public sector, the Office of the Auditor-General of the Federation (OAuGF) has uncovered over ₦100 billion in financial breaches at the Federal Ministry of Power. The findings were part of the 2022 Annual Report on Non-Compliance (Volume II), which was submitted to the National Assembly and highlights systemic weaknesses in financial controls at the ministry. (Punch Newspapers)

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2. Overview of the Audit Findings

The Auditor-General’s report found multiple irregularities within the 2021 financial operations of the Ministry of Power, including:

• Unaccounted funds and discrepancies in financial records

• Procurement violations and missing documentation

• Unauthorised expenditures such as foreign travel without required approvals

• Undocumented transfers to major power projects

• Advances to staff above statutory limits (Punch Newspapers)

In total, the breaches flagged by the auditors amounted to ₦100,366,857,431.16, raising serious concerns about the ministry’s internal financial controls and compliance with regulations. (Punch Newspapers)

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3. Key Areas of Financial Breaches

3.1 Capital Cash Book and Financial System Discrepancy

The audit revealed a discrepancy of ₦230,795,255.27 between the ministry’s capital cash book balance and the figures recorded on the Government Integrated Financial Management Information System (GIFMIS).

• The ministry’s capital cash book showed a balance of ₦15.59 billion as of 31 December 2022.

• Meanwhile, GIFMIS records indicated a balance of ₦15.36 billion, leaving a ₦230.79 million gap that the ministry could not satisfactorily explain.

• Auditors termed the unexplained difference a breach of financial regulations, warning that such lapses could allow misdirection of public funds. (Punch Newspapers)

Auditors dismissed the ministry’s explanation that the discrepancy was due to a failure to reconcile records by the Central Process Office, asserting that reconciliation practices should have been carried out by properly trained staff. (Punch Newspapers)

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3.2 Procurement Files and Contract Documentation

Perhaps the most troubling finding was the ministry’s failure to provide procurement and contractor contract files relating to projects worth ₦95.42 billion, despite repeated audit requests.

• Auditors noted that, without these files, they could not determine whether contracts had been executed, verified, or delivered value for money.

• This lack of transparency is a direct violation of the Public Procurement Act and undermines public accountability in spending. (Punch Newspapers)

The auditors recommended that the full contract sums be recovered and returned to the Federal Treasury if accountability cannot be established.

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3.3 Unauthorised Advances to Staff

The ministry reportedly granted ₦282.67 million in non-personal advances to staff for procurement purposes — a figure significantly above the statutory limit of ₦200,000.

• Auditors stated that such advances bypassed standard procurement processes, resulting in a potential loss of government revenue, including an estimated ₦15.51 million in uncollected tax. (Punch Newspapers)

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3.4 Unapproved Foreign Travel Expenses

The audit flagged ₦33.56 million spent on foreign travel to events such as the World Utilities Congress and Huawei exhibitions.

• Crucially, there was no evidence that the trips were approved by either the Office of the Secretary to the Government of the Federation or the Head of the Civil Service, as required under existing government circulars.

• Auditors described the unapproved trips as a breach of fiscal discipline that must be rectified. (Punch Newspapers)

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3.5 Unaccounted Transfers to Hydropower Projects

In another serious finding, the ministry could not explain transfers totaling ₦4.40 billion to the accounts of major hydropower projects — including Mambilla, Zungeru, and Kashimbilla.

• Despite repeated requests, no supporting expenditure details or vouchers were provided.

• The ministry claimed that some records were with the Economic and Financial Crimes Commission (EFCC), but auditors stressed that transparency and accountability remain the ministry’s responsibility. (Punch Newspapers)

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4. Institutional and Governance Implications

The Auditor-General’s report underscores systemic weaknesses in internal controls and compliance within the Ministry of Power — a ministry responsible for overseeing Nigeria’s electricity policy, generation, and transmission infrastructure.

The findings add to broader concerns about public financial management in Nigeria, where recurrent audit queries across MDAs have triggered calls from lawmakers and civil society for more robust enforcement of audit recommendations and stronger consequences for non-compliance. (Punch Newspapers)

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5. Recommendations and Next Steps

The Auditor-General recommended that:

• The Permanent Secretary of the Ministry of Power be required to account to the Public Accounts Committees of the National Assembly for all questioned funds.

• All funds linked to unexplained breaches be recovered and remitted to the Treasury.

• Failure to comply should attract sanctions for gross misconduct and irregular payments under Nigeria’s financial regulations. (Punch Newspapers)

Lawmakers and anti-corruption advocates have reiterated the need for decisive action to enforce audit findings and uphold public accountability across federal agencies. (TheCable)

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6. Conclusion

The Auditor-General’s revelation of over ₦100 billion in financial breaches at the Federal Ministry of Power represents a critical challenge to governance and fiscal discipline in Nigeria’s energy sector. The detailed audit findings — spanning procurement failures, unaccounted funds, unauthorized expenditures, and missing documentation — highlight deep-seated weaknesses that, if unaddressed, could undermine public trust and derail effective public administration.

Ensuring that audit recommendations are acted upon, funds are recovered, and accountability is enforced will be vital steps toward strengthening financial management and integrity within the ministry and the broader federal government. (Punch Newspapers)

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