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N700bn Contract Scam Rocks N’Delta Ministry …FG Orders Contractors’ Arrest, Prosecution

Published

9 years ago

June 2, 2017

The Federal Executive Council (FEC) has received a report on the probe of activities in the Niger Delta Ministry between 2009 and 2015, which uncovered massive contract scams from the N700 billion released to the ministry within the period.
According to the report, despite the huge sums paid to contractors, only a dismal 12 per cent of contract performance was recorded, even as government now plans to recover the outstanding balance from the contractors or have them prosecuted.
Minister of Niger Delta Affairs, Usani Usani, disclosed this to State House correspondents after the weekly FEC meeting presided over by Acting President, Prof Yemi Osinbajo, at the Presidential Villa, Abuja.
He said, “the revealing content of the report shows that over N423billion has been expended in the region by the ministry alone, not other intervening agencies. From this amount, project execution rate has been at 12 per cent, with an average completion rate of a project standing at five years and the impact rate is eight per cent.
“So, today we have sought approval from council to have the recommendations of this report conveyed to the legitimate agencies charged with the statutory responsibilities of recovering government assets that are either misappropriated, misused or found to be idling in some quarters.
“With this, it means all those who have accessed government resources for one purpose or another must be compelled to make adequate use of same, otherwise face the recommendations that go with such violations. That is our position concerning that report and we have got council approval for that”.
The minister explained that the figures mean that 60 per cent of the funds appropriated for 427 contracts were paid out to contractors who only managed a 12 per cent completion rate.
He continued: “When we say 60 per cent, it is 60 per cent of the amount of money that was actually appropriated, being N700billion. And so, 60 per cent of that constitutes N423billion.
“So, to find that N423billion has been expended in the region with the type of result we see obviously shows that there is something tangibly and obviously wrong with how procurement had been carried out in the ministry”.
On the punishment to be meted to defaulting contractors, Usani said, “The measure of action to be taken to address the shortfall of our expectations of commitment to contractual commitments will be the determinant of what will be done. So, those that require sanctions will be sanctioned and the sanctions may not be uniform. It will also be according to the measure of liabilities owed by each of those contractors.
“Some should be compelled to return to site. Some, of course, should be made to refund money – those who we have seen by action displaying criminal intent by collecting money and not appearing at site at all.
“The report is not just all about punishing people. There are also those who have performed well and are commended and the report recommends that they should be encouraged to carry on in their contractual commitments”.
He also noted that officials like those of evaluation or monitoring personnel the ministry found to have connived with the defaulting contractors will be approximately dealt with, though he didn’t confirm any impending purge of officials.
On the slow pace of work on the East-West Road, Usani said, “As you know, no government agency is sufficiently funded. That becomes a major challenge. The second issue is to address the concern about commitment or lack of it by government. No administration, to the best of my knowledge, within a democratic setting, has been more committed than this present government.
“And demonstration of this is the action of this administration to go ahead and seek extra budgetary special loan credit from China to the tune of $500million. Now, we are making a fresh application to increase that to $774million to be able to tackle an aspect of that road, and this came under five of the special projects nominated by the president to see that work doesn’t stop, and if you look at our budget as lean as it is – about 50 per cent goes on the allocation to the East-West Road.
“Beyond that, for this year, the budget ministry proposed N8billion counterpart funding for the credit facility we are getting from China. So, we are committed but it is just impossible to say we will be able to allocate enough funds because the competing demands do not allow satisfaction in every sector of the economy. So, it is a problem for us”, Usani added.
Meanwhile, the House of Representatives Committee on Public Procurement yesterday, summoned the Minister of Finance, Kemi Adeosun, over alleged payment of N17 billion for procurement of office equipment.
It also summoned the Auditor-General of the Federation (AGF), Ahmed Idris, and former Accountant-General of the Federation, Jonah Otunla, over the transaction.
The three top officials are to appear before the committee members on Tuesday.
Their invitation was sequel to their failure to appear at the public hearing on the allegation organised by the committee on Thursday.
The minister sent the permanent secretary in the ministry, Isa Dutse, to represent her, but the lawmakers refused to accept any excuse for her absence at the investigative hearing.
Before issuing the summons, the chairman of the committee, Oluwole Oke, said the three officials had violated the provisions of section 15 of the Public Procurement Act 2007 as it pertained to the role of procurement entities.
He told the permanent secretary that the minister must provide documents that include the president’s approval for the contract, agreement signed by the contractors and record of payment of the contract by the ministry.
He said the summons became necessary because there was a document from the Office of the Accountant-General of the Federation showing that they had paid N17 billion on the contract.

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Tinubu Hails NGX N100trn Milestones, Urges Nigerians To Invest Locally

Published

5 hours ago

January 9, 2026

The Tide

President Bola Tinubu yesterday celebrated the Nigerian Exchange Group’s breakthrough into the N100tn market capitalisation threshold, saying Nigeria has moved from an ignored frontier market to a compelling investment destination.

Tinubu, in a statement signed by his Special Adviser on Information and Strategy, Bayo Onanuga, urged Nigerians to increase their investments in the domestic economy, expressing confidence that 2026 would deliver stronger returns as ongoing reforms take firmer root.

He noted that the NGX closed 2025 with a 51.19 per cent return, outperforming global indices such as the S&P 500 and FTSE 100, as well as several BRICS+ emerging markets, after recording 37.65 per cent in 2024.

“With the Nigerian Exchange crossing the historic N100tn market capitalisation mark, the country is witnessing the birth of a new economic reality and rejuvenation,” Tinubu said.

He attributed the stellar performance to Nigerian companies proving they can deliver strong investment returns across all sectors, from blue-chip industrials localising supply chains to banks demonstrating technological innovation.

The President added, “Year-to-date returns have significantly outpaced the S&P 500, the FTSE 100, and even many of our emerging-market peers in the BRICS+ group. Nigeria is no longer a frontier market to be ignored—it is now a compelling destination where value is being discovered.”

Tinubu disclosed that more indigenous energy firms, technology companies, telecoms operators and infrastructure firms are preparing to list on the exchange, a move he said would deepen market capitalisation and broaden economic participation.

He also cited what he described as a sustained decline in inflation over eight months—from 34.8 per cent in December 2024 to 14.45 per cent in November 2025—projecting that the rate would fall below 10 per cent before the end of 2026.

“Indeed, inflation is likely to fall below 10 per cent before the end of this year, leading to improved living standards and accelerated GDP growth. The year 2026 promises to be an epochal year for delivering prosperity to all Nigerians,” he said.

The President attributed the trend to monetary tightening, elimination of Ways and Means financing, and agricultural investments, which he said helped stabilise the naira and ease post-reform pressures.

Nigeria’s current account surplus reached $16bn in 2024, with the Central Bank projecting $18.81bn in 2026, reflecting a trade pattern shift toward exporting more and importing less locally-producible goods.

Non-oil exports jumped 48 per cent to N9.2tn by the third quarter of 2025, with African exports nearly doubling to N4.9tn. Manufacturing exports grew 67 per cent year-on-year in the second quarter.

Foreign reserves have crossed $45bn and are expected to breach $50 billion in the first quarter, giving the CBN ammunition to maintain currency stability and end the volatility that previously fuelled speculation, according to the President.

Tinubu also highlighted infrastructure expansion in rail networks, arterial roads, port revitalisation, and the Lagos-Calabar and Sokoto-Badagry superhighways, alongside improvements in healthcare facilities that are reducing medical tourism costs, and increased university research grants funded through the Nigeria Education Loan Fund.

“Our medicare facilities are improving, and medical tourism costs are declining. Our students benefit from the Nigeria Education Loan Fund, and universities are receiving increased research grants,” he said.

He described nation-building as a process requiring hard work, sacrifices, and citizen focus, pledging to continue working to build an egalitarian, transparent, and high-growth economy catalysed by historic tax and fiscal reforms that came into full implementation from January 1.

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RSG Kicks Off Armed Forces Remembrance Day ‘Morrow …Restates Commitment Towards Veterans’ Welfare

Published

6 hours ago

January 9, 2026

The Tide

The Rivers State Government has reiterated its commitment towards the welfare of veterans, serving officers and widows of fallen officers in the State.

?The Secretary to the Rivers State Government, Dr. Benibo Anabraba, in a statement by ?Head, Information and Public Relations Unit, SSG’s ?Office, ?Juliana Masi, stated this during the Central Planning meeting of the 2026 Armed Forces Remembrance Day in Port Harcourt, yesterday.

?Anabraba thanked the Committee for their contributions to the success of the Emblem Appeal Fund Ceremony recently held in the State and called on them to double their efforts so that the State can record resounding success in the remaining activities.

?According to him, the remembrance day events will begin with Jumaàt Prayers on Friday, 9th January at the Rivers State Central Mosque, Port Harcourt Township, while a Humanitarian Outreach/Family and Community Day will be hosted on Saturday, 10th January, by the wife of the governor, Lady Valerie Siminalayi Fubara, for widows and veterans.

?”On Sunday, 11th January, an Interdenominational Church Thanksgiving Service will hold at St. Cyprian Anglican Church, Port Harcourt Township while the Grand-finale Wreath- Laying Ceremony will hold on Thursday, 15th January at the Isaac Boro Park Cenotaph, Port Harcourt”, he said.

?The SSG noted that one of the highlights of the events is the laying of wreaths by Governor Siminalayi Fubara and Heads of the Security Agencies.

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Fubara Redeploys Green As Commissioner For Justice

Published

1 week ago

December 30, 2025

The Tide

The Governor of Rivers State, Sir Siminalayi Fubara, has approved a minor cabinet reshuffle in the State Executive Council.

Under the new disposition, Barrister Christopher Green, who until now served as Commissioner for Sports, has been redeployed to the Ministry of Justice as the Honourable Attorney General and Commissioner for Justice.

This is contained in an official statement signed by Dr. Honour Sirawoo, Permanent Secretary, Ministry of Information and Communications.

According to the statement, Barrister Green will also continue to coordinate the activities of the Ministry of Sports pending the appointment of a substantive Commissioner to oversee the ministry.

The redeployment, which takes immediate effect, was approved at the last State Executive Council meeting for the year 2025, underscoring the Governor’s commitment to strengthening governance, ensuring continuity in service delivery, and optimising the performance of key ministries within the state.