₦10.5 Billion Road To Nowhere And ₦294 Million In Private Accounts: The Agriculture Ministry Scandal Headed by Sabo Nanono

Secrets Reporters 

Behind the fields, farms and food markets that sustain millions of Nigerian households, financial records from the Federal Ministry of Agriculture and Food Security have revealed a trail of contract and payment irregularities involving billions of naira during the 2020 and 2021 financial years.

The findings, covering the period when the ministry was known as the Federal Ministry of Agriculture and Rural Development, identified issues involving the diversion of public funds, an abandoned road project, inflated contract estimates, unexplained deductions, withheld financial records, unverified contractors and payments for works without evidence of execution.

The records showed that ₦294,620,000.00 was diverted into private commercial accounts. The transaction contravenes Paragraph 701 of the Financial Regulations 2009, which provides that no official bank account shall be opened without authorisation from the Accountant-General of the Federation.

Similarly, a road project with a contract value of ₦10,543,692,694.99 was abandoned after the contractor failed to demonstrate the financial capacity required to complete the project. The project had reached only 18.89 per cent completion despite payments already made, with the financial review putting the resulting estimated value-for-money loss at ₦1,461,204,087.02. The procurement process contravened Section 24(1) of the Public Procurement Act 2007, which requires procurement of goods and works to be conducted through open competitive bidding and provides the framework for selecting contractors with the requisite capacity.

Moreso, 14 contract estimates were inflated by a combined ₦238,526,341.35. The inflation of contract estimates contravenes the financial and procurement control requirements applicable to government contracting, including the provisions of the Public Procurement Act 2007 governing proper estimation and procurement of public works and services.

Additionally, 14 payments totalling ₦2,164,702,006.78 contained administrative fees amounting to ₦53,635,814.66 for which no explanation or accountability was provided. The failure to account for the deductions contravenes the requirements of the Financial Regulations 2009 governing proper documentation, authorisation and accountability for government expenditure.

However, ministry officials failed to provide access to documents and records relating to expenditure amounting to ₦1,526,183,217.03. The withholding of the records contravenes Section 85(2) of the 1999 Constitution, which guarantees the Auditor-General access to public accounts, books, records and other relevant documents required in the discharge of the constitutional mandate.

Similarly, contractors were engaged for a project valued at ₦280,652,830.00 without their credentials being verified. The engagement without verification contravenes the procurement requirements under the Public Procurement Act 2007, which require procuring entities to ensure that contractors possess the necessary qualifications and capacity before being awarded public contracts.

Furthermore, ₦19,380,000.00 was paid for the production and execution of materials without evidence that the contracted work was carried out. The payment without proof of execution contravenes the Financial Regulations 2009, which require government expenditure to be properly supported and verified before payment.

The financial period covered January 2020 to December 2021, when the ministry was headed by Sabo Nanono for the greater part of the period before Mohammed Mahmood Abubakar assumed the ministerial position. The ministry was subsequently renamed the Federal Ministry of Agriculture and Food Security and is currently headed by Abubakar Kyari, who assumed office in August 2023.

The transactions examined relate to the 2020 and 2021 financial years and therefore predate Kyari’s tenure as minister. The outstanding issues, however, remain within the institutional records of the ministry, including the ₦294.62 million transferred to private commercial accounts, the abandoned ₦10.5 billion road project and the unresolved financial and procurement findings identified in the records.

Paragraph 3106 of the Financial Regulations 2009 prescribes sanctions relating to irregular payment, while Paragraph 3129 provides for consequences relating to gross misconduct, provisions cited in connection with the identified financial irregularities.