FAAC: Three Tiers of Government Share ₦2.550 Trillion as June 2026 Revenue; States and LGAs Receive Over ₦1.36 Trillion The Federation Account Allocation Committee (FAAC) has distributed a total of ₦2.551 trillion as Federation Account revenue for June 2026 to the Federal Government, the 36 state governments, and the 774 Local Government Councils across Nigeria. The allocation was approved during the FAAC meeting held in July 2026 in Abuja and chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy. The meeting was attended by the Accountant-General of the Federation, State Commissioners of Finance, and other members of the committee. ( FMINFO ) Breakdown of the Revenue Distribution The total distributable revenue of ₦2.551 trillion comprised: ₦1.810 trillion from Statutory Revenue. ₦740.724 billion from Value Added Tax (VAT). ( FMINFO ) Statutory Revenue Allocation From the statutory revenue: Federal Government: ₦849.366 billion State Govern...
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)
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)
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)
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.
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)
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)
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)
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)
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)
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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