The Office of the Auditor-General for the Federation has flagged at least N3.62 billion in financial irregularities at the National Power Training Institute of Nigeria (NAPTIN), Abuja, including unremitted tender fees, unsupported contract payments and procurements without evidence of delivery.

The findings were contained in the Auditor-General’s 2024 Annual Report on Non-compliance and covered transactions between January 1, 2022 and December 31, 2023.

Nine quantified findings contained in the available extracts amounted to approximately N3.62 billion. The figure excludes observations for which no financial value was specified as well as incomplete entries in the extracted report.

The audit also identified missing financial records, under-remittance of taxes, consultancy-related payments without evidence of execution and expenditure charged to accounts designated for constituency projects.

N2.77bn Tender Fees Unremitted

The largest finding involved N2.77 billion generated from the sale of bid documents and tender fees.

According to the audit report, the money was not remitted to the Consolidated Revenue Fund as required by government regulations.

“The sum of N2,771,731,464.25, being proceeds from the sale of bid documents and tender fees during the bidding process, was not remitted to the CRF, as required by extant regulations,” the report stated.

The auditors also said relevant documents were not provided to support bid-purchase transactions through Remita, limiting their ability to verify the transactions.

The Auditor-General recommended that NAPTIN’s Director-General account for the funds before the Public Accounts Committees of the National Assembly and ensure the amount is recovered and remitted to the Treasury.

The report further recommended sanctions in accordance with the Financial Regulations if the recommendations were not implemented.

N547m Store Purchases Queried

Another significant finding involved N547.21 million paid in 11 transactions for the procurement of various store items.

The auditors said they were not provided with evidence showing that the items had been delivered.

Store Receipt Vouchers and records confirming that the goods had been entered into NAPTIN’s stores ledger were also not presented for audit verification.

According to the report, the absence of these records created a risk that payments could have been made for goods that were not supplied and raised concerns about possible diversion of public funds.

The audit recommended that management account for the expenditure and recover the relevant funds. However, the amount specified for recovery in the recommendation differed from the original payment figure and would require further verification.

N196.59m Constituency Projects Under Scrutiny

The audit also queried N196.59 million spent on three constituency projects involving electricity transformers and solar streetlights in Ogun, Lagos and Osun states.

The expenditure comprised N59.2 million for the supply and installation of 500kVA transformers at locations in Ogun State; N38.53 million for 40 solar streetlights in communities within the Epe Federal Constituency of Lagos State; and N98.86 million for 500kVA transformers in Ijebu Jesa, Osun State.

According to the report, NAPTIN did not provide evidence that the contractors were eligible to execute the projects under the Bureau of Public Procurement’s interim registration process.

The auditors also said there was no evidence that the projects had been monitored and certified by the Federal Ministry of Special Duties and Intergovernmental Affairs as required by applicable guidelines.

Evidence showing that the supplied items had been received into the institute’s stores was also not provided.

The Auditor-General recommended that the Director-General account for the payments and recover and remit the funds to the Treasury.

N29.65m Allowances Charged to Constituency Project Account

A further N29.65 million spent on duty tour allowances, sitting allowances and honoraria was also queried.

According to the audit, the expenditure comprised 13 payments charged to a constituency project account without evidence of approval to transfer funds between budget heads.

The auditors said inspection reports and other supporting documents were also not provided to justify the duty tour allowances.

The report recommended recovery of the amount and warned that sanctions could be imposed under the Financial Regulations.

N4.12m VAT Under-Remitted

NAPTIN was also found to have under-remitted N4.12 million in Value Added Tax relating to 21 contracts valued at N136.86 million.

According to the report, VAT payable at 7.5 per cent amounted to N10.26 million, but only N6.14 million was remitted to the relevant tax authority.

The auditors cited government financial regulations requiring accounting officers to make adequate provision for VAT and Withholding Tax on applicable contracts and ensure the deductions are fully remitted to the appropriate authorities.

Other Payments Flagged

Other audit observations included N24.4 million in administrative charges incorporated into bills of quantities without evidence that the charges were requested, approved or utilised.

Another N10.68 million was provided for Nigerian Electricity Management Services Agency certification and commissioning without adequate supporting evidence.

The audit also identified N17.34 million in contingency provisions that were paid shortly after contract awards without the required approvals.

A further N22.45 million transferred for a youth and women training programme was queried after auditors said they were not provided with evidence showing that the programme had taken place.

Missing Records Limit Audit Verification

Beyond the quantified findings, the Auditor-General faulted NAPTIN for failing to provide several financial and administrative records required for the audit.

The outstanding documents included the institute’s trial balance, general ledger, statements of remittance inflows and outflows, correspondence with the supervising Ministry of Power and its 2023 financial proposal.

According to the report, the absence of these records limited audit verification and weakened accountability and transparency.

The Auditor-General recommended that NAPTIN’s Director-General explain the failure to provide the records before the National Assembly’s Public Accounts Committees and submit the outstanding documents for further verification.

The report also cited weaknesses in the institute’s internal control system, warning that they could expose public funds to revenue leakage, unsupported payments and other financial risks.

According to the audit report, NAPTIN management did not respond to the observations, leaving the findings unresolved pending implementation of the Auditor-General’s recommendations.