The Economic and Financial Crimes Commission has highlighted key facts Nigerians need to know about procurement fraud, describing it as one of the biggest threats to accountability in the country.

In an awareness post on its official X account on Tuesday, the commission recalled that its Chairman, Ola Olukoyede, had said in January 2025 that “procurement and contract fraud accounted for more than 90 per cent of Nigeria’s corruption and fraud issues.”

Procurement fraud refers to the intentional manipulation or deception in the procurement process to obtain personal or organisational benefits, often at the expense of others.

The anti-graft agency explained that the crime takes different forms, including:

Bid rigging – colluding to predetermine bid winners.

Bribery – offering or accepting inducements to influence decisions.

Kick-backs – receiving payments for favourable treatment.

Over-invoicing – inflating prices or quantities.

Product substitution – delivering inferior goods against contract terms.

“Procurement fraud can occur in various industries, including government contracting, construction, and private sector purchasing.

“It can lead to financial losses, undermine trust, and damage reputations,” the EFCC stated.

The commission warned that offenders risk stiff penalties under the Public Procurement Act (2007).

Section 58 of the law prescribes “a term of imprisonment not less than five calendar years but not exceeding 10 calendar years without an option of fine.”

It added that corrupt procurement officers face dismissal and jail terms, while companies may be barred from public contracts for not less than five years and fined up to 25 per cent of the value of the fraudulent deal.

To illustrate its point, the EFCC cited the conviction of Chandra Singh, an Indian businessman, who was sentenced to 10 years’ imprisonment for procurement fraud involving N816 million.

“Delivering judgment on Thursday, February 27, 2025, Justice Ijelu found him guilty as charged and sentenced him to 10 years without an option of fine.

“He was also ordered to make restitution of N345 million to his victim,” the statement read.

The commission urged Nigerians to be vigilant and resist attempts to manipulate contract processes.

“The fight against procurement fraud is a fight to safeguard public resources, promote fairness, and strengthen national development,” it added. (The PUNCH)