A shocking new report has revealed that Nigerian government agencies failed to account for a staggering N3.5 trillion in public funds in 2021, raising fresh concerns over financial mismanagement and lack of accountability in the country’s public sector.
The Paradigm Leadership Support Initiative (PLSI), a civil society organization focused on governance and transparency, disclosed these alarming figures after analyzing the findings of the 2021 audit of the Nigerian Government.
According to the report, the missing funds arose from multiple irregularities, including unremitted revenues, unexecuted contracts, payments without supporting documents, and outright violations of financial policies.
A Breakdown of the Missing Trillions
Of the total N3.5 trillion unaccounted for, the report identified that N2.9 trillion was due to unrecovered outstanding revenue and debts owed to the government by various agencies and institutions.
Contract fraud and irregularities accounted for a significant portion of the mismanagement, with N7.4 billion lost through questionable contract awards and N167.6 billion linked to payments for unexecuted projects.
The Federal Government’s e-payment policy, which was designed to curb corruption and improve financial accountability, was also violated to the tune of N18 billion, while payments made without any supporting documents amounted to N8.3 billion.
Further examination of the report shows that funds were misapplied across multiple categories, including:
- Irregular payments – N115.8 billion
- Under-deduction of taxes – N129.3 million
- Non-deduction of taxes – N2.6 billion
- Non-remittance of tax funds – N11.6 billion
- Unaccounted expenditures – N122.5 billion
- Circumvention of procurement processes – N1.9 billion
Contract Splitting and Tax Evasion
One of the report’s most damning revelations is that government agencies deliberately split contracts to avoid procurement regulations, with N731.2 million misappropriated through this method.
Similarly, N69.9 billion in tax liabilities were recovered by the Federal Inland Revenue Service (FIRS), indicating that government institutions were either evading tax payments or failing to remit what they had collected.
In addition, government vehicles worth N747.7 million were illegally kept in private custody, while N1.1 billion was paid without proper documentation such as paid vouchers.
The audit also found that agencies engaged external solicitors without the Attorney General’s approval, resulting in payments of N243.9 million in legal fees outside proper authorization.
Call for Accountability and Reforms
The findings have sparked outrage among transparency advocates, who argue that the unchecked mismanagement of public funds is a major contributor to Nigeria’s economic struggles.
“The scale of these financial irregularities is staggering,” said Olusegun Elemo, Executive Director of PLSI. “How do we expect to build public trust in government when trillions of naira are unaccounted for year after year?”
The report has also reignited calls for stricter oversight, financial reforms, and prosecution of those responsible for the mismanagement of public funds.
The National Assembly and the Office of the Auditor-General of the Federation have been urged to take swift action in ensuring that those responsible for these violations face the full weight of the law.
Nigerians React: “Where Is Our Money?”
Nigerians have taken to social media to express their frustration over the report’s findings, with many questioning how such large sums could simply “disappear.”
“This is why we have no roads, no hospitals, and no stable electricity! They steal our money in broad daylight, and nobody goes to jail,” tweeted a Lagos-based activist.
Others demanded President Bola Tinubu’s administration take immediate steps to recover the missing funds and ensure accountability.
“This country is bleeding financially, and if we don’t fix it now, we might as well give up,” another commenter wrote.
A Recurring Scandal
This is not the first time government agencies have been implicated in massive financial mismanagement. Similar reports in previous years have exposed widespread corruption in the public sector, but few officials have been held accountable.
Despite repeated promises by successive administrations to tackle corruption, Nigeria continues to rank poorly on the Transparency International Corruption Perceptions Index.
The PLSI’s report serves as yet another reminder that without strong political will and a commitment to transparency, public funds will continue to vanish into thin air—leaving citizens to bear the consequences.
