The annual audit report of Nigeria’s Auditor-General has once again unveiled a staggering level of financial mismanagement, exposing gaps in accountability that perpetuate fraud in public offices. With over ₦3.4 trillion in financial irregularities cited in the 2021 audit report, the findings reveal systemic lapses that enable impunity at every level of government.
Despite the weight of these revelations, little to no action has been taken to address the infractions—a pattern that raises questions about the purpose of the audit itself.
Established under Nigeria’s Constitution, the Office of the Auditor-General for the Federation (OAuGF) is tasked with auditing the financial accounts of government Ministries, Departments, and Agencies (MDAs). Its mandate includes ensuring that public funds are used appropriately and transparently.
However, critics argue that the annual audit has become little more than a ceremonial exercise. “It would be a fraud to call the Auditor-General’s report a fraud—it is far worse,” remarked one commentator. The report is often riddled with details of unchecked financial recklessness, yet the necessary follow-through on investigations, prosecutions, or recovery of funds remains elusive.
By law, the Auditor-General must submit its report to the National Assembly no later than two years after the financial period being reviewed. Yet, the audit for 2021 was only presented in 2025—a four-year delay. These extended timelines not only breach constitutional provisions but also dilute the potency of the findings.
The 2021 report documented financial infractions in 28 categories, each painting a grim picture of the misuse and misappropriation of public funds. Among the most notable findings:
- ₦2.9 trillion in uncollected government revenue: The Nigerian Bulk Electricity Trading Plc accounted for ₦2.896 trillion of this sum.
- ₦7.3 billion in contract irregularities: Thirty-two MDAs were implicated, with the Rural Electrification Agency responsible for ₦2.1 billion.
- ₦115.7 billion in irregular payments: Nigerian Bulk Electricity Trading Plc also led this category with ₦96.2 billion.
- ₦167.5 billion in unexecuted contracts: Of this, ₦100 billion was linked to the Nigerian Bulk Electricity Trading Plc.
- ₦6.6 billion in unremitted internally generated revenue (IGR): The National Pension Commission withheld ₦4.4 billion of this total.
The list goes on, highlighting discrepancies such as tax evasion, unretired cash advances, unauthorized virements, and payments without proper documentation.
Experts have long warned that failing to address these infractions creates a dangerous precedent.
This culture of impunity is exacerbated by legal loopholes and bureaucratic red tape. The Public Accounts Committees, tasked with investigating audit findings, are often slow to act, if they act at all. The absence of enforcement mechanisms leaves the Auditor-General powerless to ensure compliance.
The Office of the Auditor-General itself has not escaped criticism. Some argue that the body lacks the tools and resources to enforce its mandate. Others point to systemic failures in governance that undermine its efforts.
One glaring issue is the lack of prosecutorial powers. Although the Auditor-General can identify irregularities, it has no authority to compel restitution or initiate legal proceedings. This gap leaves the burden of enforcement on other bodies, which are often uninterested in pursuing such cases.
The delay in submitting audit reports has turned the process into what some critics call a “comedy of fraud.” The submission timeline has shifted from two years to nearly four, and there is little optimism that future reports will fare any better.
“If the audit for 2021 only came out in 2025, when can we expect the 2025 report—2037?” quipped one commentator. “By then, the perpetrators would have long enjoyed their spoils.”
The financial losses outlined in the audit come at a time when Nigeria is grappling with economic challenges. The naira’s devaluation, rising inflation, and mounting debt make the misuse of public funds particularly egregious. Critics argue that every naira lost to fraud further widens the gap between Nigeria’s potential and its reality.
“What makes these figures even more shocking is the value of the naira when these funds were stolen,” said an economist. “If adjusted for today’s exchange rate, the losses would be exponentially higher.”
Leadership failures also play a significant role in perpetuating these issues. Past efforts to reform public financial management have yielded limited success. Without political will, even the most damning audit reports are likely to be ignored.
For the Auditor-General’s office to fulfill its mandate, significant reforms are needed. These include granting it prosecutorial powers, ensuring timely submission of reports, and holding MDAs accountable for infractions.
The 2021 Auditor-General’s report is a sobering reminder of the scale of financial mismanagement in Nigeria. With over ₦3.4 trillion unaccounted for, the findings underscore the urgent need for accountability in public finance. Whether Nigeria can rise to this challenge remains an open question, but one thing is clear: without action, the cycle of impunity will continue, and the cost will only grow.
