The Federal Ministry of Power has been indicted by the Auditor-General of the Federation for financial irregularities and breaches of public finance rules.

Findings in the Auditor-General’s 2022 Annual Report on Non-Compliance (Volume II) revealed multiple infractions at the ministry, ranging from unaccounted funds and procurement violations to unauthorised expenditures.

According to the report, irregularities traced to the ministry’s 2021 financial operations amounted to N100.37bn, raising fresh concerns over internal controls and fiscal discipline within the power sector.

The report, which has been transmitted to the National Assembly and obtained by Sunday PUNCH, places the Ministry of Power alongside a growing list of federal agencies flagged by auditors over alleged mismanagement of public funds.

The report indicts the ministry over unaccounted cash balances, unaudited contracts, procurement breaches, unauthorised foreign travels, and undocumented transfers to major power projects, warning of systemic weaknesses in internal controls that could enable diversion of public funds.

The auditor general identified a N230,795,255.27 discrepancy between the Federal Ministry of Power’s capital cash book and balances recorded on the Government Integrated Financial Management Information System.

While a committee from the Office of the Accountant-General of the Federation certified a capital cash book balance of N15.59bn as of December 31, 2022, GIFMIS records showed N15.36bn, leaving the difference unexplained.

The report read, “Audit observed that: A certificate of closure of capital cash book was signed by a three member committee from the Inspectorate Department of the Office of the Accountant-General of the Federation.

“The certificate of closure above showed a balance of N15.59bn as at the end of the financial year (31st December, 2022). Total capital warrant lines (Allocations) on Government Integrated Financial Management Information System platform for the same period stood at N40.82bn.

“The total expenditure on the GIFMIS platform for the same period was N25.46bn. The balance in the Ministry’s capital cash book on the GIFMIS platform was N15.357bn. The comparison of the cash book balance of the Ministry as at 31st December, 2022 which was N15.59bn and the balance on the GIFMIS platform of N15.357bn led to a difference of N230.79m and the difference in above remained unaccounted for by the Ministry.”

The Auditor-General warned that the anomaly breached the Financial Regulations and exposed the ministry to loss and diversion of government funds. Although management blamed non-reconciliation by its Central Process Office, the auditors rejected the explanation and demanded full accountability.

“The difference of N230,795,255.27 was due to non-reconciliation of the Capital cash books and the GIFMIS platform by the central process office. Meanwhile, the CPO staff have been properly trained to prepare all the necessary reconciliation statements. The internal control system will be strengthened.

“The Permanent Secretary should be requested to account to the Public Accounts Committees of the National Assembly, the sum of N230.795m being the difference between the GIFMIS platform and the capital cash book.

“Remit the sum to the Treasury. Forward evidence of remittance to the Public Accounts Committees of the National Assembly. Otherwise, sanctions relating to gross misconduct and irregular payment stipulated in paragraphs 3129 and 3106 of the Financial Regulations (2009) respectively, should apply,” the report added.

More troubling is the auditors’ claim that the ministry denied it access to procurement and contractors’ files linked to contracts worth N95.42bn.

Despite repeated requests, the ministry failed to produce documents relating to projects awarded during the period, making it impossible for auditors to verify project execution or confirm value for money.

The report described the situation as a direct violation of the Constitution and the Public Procurement Act, warning of risks including unauthorised payments and massive loss of public funds. Auditors recommended that the entire contract sum be recovered and remitted to the Treasury if accountability is not established.

The report stated, “Requests for the procurement and contractors’ files through letters dated 25th May, 2023 and 17th September, 2023 were not honoured. The non-availability of these files made it impossible for the audit to ascertain the execution and existence of the projects or determine whether value was derived from the execution of the projects.”

The Auditor-General further discovered that the ministry granted N282.67m in non-personal advances to staff for procurement purposes, far above the statutory threshold of N200,000.

It stressed that, “The advances granted were beyond the statutory threshold and amounted to circumvention of the procurement process, resulting in loss of government revenue.”

The report stated that the practice amounted to circumvention of procurement laws, resulting in an estimated N15.51m loss in tax revenue to the Federal Government.

Although management argued the advances were for urgent operational needs, auditors dismissed the justification and insisted the funds be fully recovered.

The audit also faulted the ministry over N33.56m spent on foreign travels to events in Abu Dhabi and Dubai, including the World Utilities Congress and Huawei exhibitions.

The report noted that no approval was obtained from the Office of the Secretary to the Government of the Federation or the Head of the Civil Service, as required by extant circulars.

“There was no evidence of approval by the Office of the Secretary to the Government of the Federation or the Office of the Head of the Civil Service of the Federation before embarking on the travels, contrary to extant regulations,” the reported stated.

Auditors warned that such actions undermined fiscal discipline and recommended full recovery of the funds.

In another major finding, the ministry could not account for N4.40bn transferred to the Mambilla, Zungeru and Kashimbilla hydropower project accounts.

Auditors said no expenditure details or supporting vouchers were provided, despite repeated requests. Management claimed the records were with the Economic and Financial Crimes Commission, but the auditors maintained that accountability obligations remained unmet.

In total, the five infractions amount to N100,366,857,431.16, according to calculations by Sunday PUNCH.

The Auditor-General urged the National Assembly’s Public Accounts Committees to compel the ministry’s Permanent Secretary to account for, recover and remit the full sums, warning that failure to do so should attract sanctions for gross misconduct and irregular payments under the Financial Regulations.

The Federal Ministry of Power oversees Nigeria’s electricity policy, generation and transmission infrastructure, including multi-billion-naira hydropower projects critical to the country’s energy transition.

However, repeated audit queries across MDAs have raised concerns over public financial management, with lawmakers and civil society groups calling for stricter enforcement of audit recommendations to curb waste and corruption. (Sunday PUNCH, excluding headline)

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