Nigeria loses N2.9trn to contract fraud in two years — EFCC
…As new EFCC Chairman vows to spend more preventing corruption than fighting it
…RMAFC recovers N500 billion unremitted revenue
Nigeria has lost N2.9trillion to contract fraud in two years, the Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede has revealed.
While responding to questions from Senators during his screening and confirmation hearing in the Senate, on Wednesday, Olukoyede said, “Between 2018 and 2020, Nigeria lost N2.9 trillion to contract and procurement fraud.”
The amount he noted was enough to pay for the construction of at least 1,000 kilometers of roads, build close to 200 standard tertiary institutions, educate about 6,000 children from primary to tertiary levels at N16 million per child.
The new EFCC boss also declared that the anti-corruption war will not be a respecter of persons adding that he was at liberty to investigate even the President of the Senate.
He, however, promised not to abuse power while vowing to be accountable to the Nigerian people as well as ensure transparency and taking preventive measures to reduce if not eliminate long drawn litigations.
Olukoyede said the EFCC under his watch will not hesitate to prosecute any offender irrespective of social or political status.
While appealing for support from all and sundry, he said, “For Nigeria to earn a reputation for transparency and accountability, there must be a collective decision that indeed corruption must be eliminated.
“We must build international reputation in transparency, and as an agency I can investigate even the Senate President, because we must call a spade a spade, we must look at evil and call it evil no matter who is involved.”
Speaking further, he identified that the Commission must look at more of the preventive measures than curative.
“Corruption has become too rampant in our society and we will do our work diligently and with respect to the provisions of the constitution,” he explained.
He also stressed that the EFCC under his watch will work together with sister agencies such as the Independent Corrupt Practices Commission (ICPC), to avoid duplication and waste of scarce public funds.
According to him, there was no better time than now for all anti-graft agencies to shun rivalries and focus on preventing crime more than enforcement.
Addressing the issue of corruption in public service, the EFCC Chairman noted that the truth be told, the kind of mansions being built by some civil servants cannot be said to be the product of some prudent savings.
He said, ”The problem we have is just like the proverbial monkey that was locked up in a cage with a bunch of ripe bananas.
“The owner stood outside with a cane. The monkey would either eat the bananas, get beaten and be alive, or allow the bananas to get rotten and die of hunger.
“Everyone wants to live a luxurious life and the incentives are all over the place. I will do more in the areas of blocking the leakages. We spend more money fighting corruption when we could have spent less to prevent it.
“Without downplaying the importance of enforcement. There is what we call a transactional credit system.
“If we continue to allow Nigerians to buy houses, cars and other luxurious properties by cash, because we don’t have an effective credit system, 1,000 anti-corruption agencies will not do us any good and that is the reality.
“We must create an atmosphere to make sure that people have choices. If I don’t steal money, can I afford to train my children in school with good standards?
“If I don’t steal money, can I buy a car after I have worked for five years? If I don’t steal money, can I put a three room bungalow in place after I had worked for 20 years? An average Nigerian does not own a home, when he has the opportunity, he would steal. Even if he did not have the opportunity he would create one.
“In order to encourage our criminal justice system to work, the substance should be taken above technicalities.
“We must encourage our criminal justice system to adjudicate in such a way that it will not drag for a very long time. Prosecution should not be allowed to last more than five years from the Court of first instance to the Supreme Court.
“The Senate can work on that very seriously. If we make the administration of the criminal justice system really work, you will see the great work the anti-corruption agencies are doing.”
He further said, “I did a survey between 2018 and 2020 on fifty entities in Nigeria. Both human and corporate entities.
“I picked just one scheme, one species of fraud, which is called contract and procurement fraud. I discovered that within the three years, Nigeria lost N2.9 trillion.
“When I put my figures together, I discovered that If the country had prevented the money from being stolen, it would have given us 1,000 kilometers of road, it would have built close to 200 standard tertiary institutions. It would have also educated about 6,000 children from primary to tertiary levels at N16m per child.
“It would have also delivered more 20,000 units of three bedroom houses across the country. It would have given us a world-class teaching hospital in each of the 36 states of the country and the federal capital territory.
“This is where we are coming from, this is where we are. Where we are going depends on the decision the Senate would take this afternoon.”
On the other hand, the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Mr. Mohammed Bello has recovered unremitted revenue worth over N500 billion belonging to the federation from some Institutions.
Mr. Bello disclosed this during an interactive session with the House of Representatives’ Committee on Finance chaired by Hon. Abiodun James Faleke (APC-Lagos), who demanded details of various Organizations where the funds were recovered from.
In his earlier presentation, RMAFC Chairman disclosed that the sum of N14 billion was recovered between 2008 and 2012 through the assistance of forensic experts engaged by the Commission.
The Commission also recovered the sum of N60.981 billion between 2012 and 2015.
In addition, over N312 billion was recovered between 2016 and 2019 while the payment was made in the 2022 fiscal year.
According to him, just recently the Commission recovered the sum of N98 billion in September, 2023 from Nigerian National Petroleum Corporation Limited (NNPCL) and remitted the same to the treasury.
In the same vein, the Commission recovered the sum of N79.102 billion from Federal and 8 State Ministries, Departments and Agencies (MDAs).
He added that the Commission is currently expanding its operations to 17 states of the Federation.
Mr. Bello further noted that there are states that are owing up to N30 billion while some are not owing the Federation.
He also informed the Committee of the Commission’s exploit through the recovery of the sum of N474 million and N199 million excise duties from two companies operating in the South West region of the country. The recovery was from January 2020 to December 2021 and 2022.
But with the intensive effort of the Commission, the solid mineral component of the Federation Account which was opened in November, 2011 led to approval of 13 percent derivative fund for States and Local Government Areas and shared according to the formula adopted.
According to him, States and Local Government Areas are meant to benefit from 30 percent of the fund.
He disclosed that the Commission also secured approval for 10 percent monthly payment from the Natural Resources Development Fund of which 1.68 percent is deducted and kept aside.
He disclosed that the immediate past President approved the sum of N30 billion for the Natural Resources Development Fund which will help the development of the sector.
