Politics
Reps Move To Block $30bn Annual Revenue Leakages
The House of Representatives has resolved to investigate various malpractices in foreign exchange allocation to companies by the Central Bank of Nigeria (CBN) and other sources running over 30 billion dollars annually.
This was sequel to a unanimous adoption of a motion by Rep. James Faleke (APC-Lagos) at the plenary, yesterday.
Moving the motion earlier, Faleke said that it was public knowledge that the performance of the economy in the country was low at this critical time
Faleke said that in the past years, Nigeria had not been able to fund capital aspect of its Appropriation Act year in year for lack of funds due to low remittances of revenue by revenue generating agencies.
He identified low payment of taxes by private companies and diversion of expected revenue by corporate organisations as other factors responsible for the inability of government to fund the budget.
“The crude oil price bench mark in 2020 Appropriation Act was put at $57 dollar per barrel but the price of crude oil in the international market has dropped to 47 dollars per barrel.
“This clearly indicates that the major source of revenue towards funding the 2020 Appropriation Act is already in the negative.
“There is an urgent need to rescue the country from over $30 billion dollars annual revenue leakages arising from tax evasion, malpractices, mis-use and diversion of foreign exchange allocations by companies and other entities,” he said.
Faleke said that invoices overstatement by importers with the intention of obtaining large forex allocation above the international cost, insurance and freight value of goods were increasing the domestic inflation rate.
He alleged that the ficticious transfer of forex allocation for the payments of dividends to foreign shareholders of Nigerian companies above the dividend approved by the company’s board of directors and audited accounts was leading to evasion of statutory 30 per cent company Income.
Faleke said that allocation of foreign exchange to companies for the repayment of principal foreign loan and interest were in some cases found to be non-existing.
He said that millions of dollars in forex allocation to companies for the purpose of payment of foreign vendors for services rendered in Nigeria were in most cases found to have evaded the then statutory five per cent VAT and seven per cent withholding Tax.
Faleke said that the value of imported physical goods, materials, equipment on account of forex allocation by most companies were always understated to Nigeria Customs Service (NCS) at the port of arrival in order to reduce import duty payable.
Mr Okonkwo made the announcement on his X (formerly Twitter) account on yesterday, expressing gratitude for what he called Alhaji Abubakar’s show of faith in him.
“I give God all the glory for being appointed by His Excellency Atiku Abubakar as his spokesperson. I thank His Excellency for the immense confidence reposed in me,” Mr Okonkwo said.
The politician credited Alhaji Abubakar with championing dialogue over conflict within party ranks.
He noted that the former vice president favours conversation and compromise when party associates raise genuine worries, rather than dismissing their concerns.
“Rather than take offence at associates for expressing genuine reservations about any action taken, His Excellency always opts for dialogue and compromise that engender solutions to problems,” Mr Okonkwo stated.
According to him, recent talks with Alhaji Abubakar and other ADC leaders tackled worries about South-East political representation within the limits of the Electoral Act, 2026, and the current political climate. He said the discussions produced guarantees for the region’s interests despite existing constraints.
Mr Okonkwo also acknowledged the work of Dr. Kashim Imam; former ADC National Chairman, Ralphs Nwosu; Ekene Onwuka, Alhaji Abubakar’s Senior Special Assistant on Special Duties, in preparing the party for next year’s elections. He thanked his loved ones and supporters for their support and prayers.
“I still covet your prayers for wisdom, courage, provision and protection needed to carry out this challenging responsibility, which will usher in a glorious and great Nigeria,” he added.
The appointment arrives weeks after Mr Okonkwo publicly attacked the ADC’s pick for running mate in 2027. He’d warned that choosing a vice-presidential candidate from the South-South would worsen what he sees as political neglect of the South-East, a region without a president or vice president since 1999.
Despite Mr Okonkwo’s objections, the ADC later announced former Rivers State Governor and ex-Minister of Transportation, Mr Rotimi Amaechi, as Alhaji Abubakar’s running mate following the ex-vice president’s clinching of the party’s presidential nomination.
The Senate has defended the passage of the Constitution of the Federal Republic of Nigeria (Alteration) (State Police) Bill, 2026, saying the proposed creation of state police is driven by national consensus and the country’s security needs rather than political considerations.
The Red Chamber passed the bill last Wednesday after more than two-thirds of senators voted in support.
In a statement issued yesterday by the Directorate of Media and Public Affairs, Office of the Senate Leader, Senator Opeyemi Bamidele described the bill as “a child of necessity and not of political expediency as well as a product of national consensus and not of cynicism.”
The senate leader said the proposal to establish state police was a matter of urgent public importance that could not be delayed because of political interests, given the country’s security challenges.
He explained that the proposal did not originate recently but emerged from memoranda submitted to the Senate Ad-hoc Committee on the Review of the 1999 Constitution.
According to him, the proposal underwent extensive consultations and rigorous scrutiny because of its sensitive nature.
Bamidele said the National Assembly consulted widely with the Executive, the Nigeria Governors’ Forum, the Conference of Speakers of State Legislatures of Nigeria, the leadership of the Nigeria Police and other stakeholders before passing the bill.
He added that during the public hearings conducted across the six geopolitical zones in July 2025, participants overwhelmingly supported the creation of state police.
“At each level of our consultation, nearly all stakeholders embraced the State Police Bill in the light of stark realities we are facing today,” he said.
The Senate leader noted that recommendations from the Nigeria Police contributed to the bill, particularly on accountability and oversight mechanisms aimed at preventing abuse of state police by political actors.
According to him, the police’s support for the proposal underscores its national significance in tackling insecurity at the state and local levels.
Bamidele also said the bill received broad bipartisan backing in both chambers of the National Assembly.
“Even though the APC is the majority, there are members of opposition parties — PDP, ADC, NDC and Labour Party — that exercised their discretion in favour of the Bill, mainly in the national interest and not on parochial basis.
“In the Senate, for instance, 84 out of 109 members voted clause by clause in support of the Bill. This accounted for 77.06 per cent approval at the Senate alone,” he said.
He argued that national security should transcend political affiliations, saying political actors in other countries often set aside partisan interests to support initiatives that strengthen security.
Bamidele called on opposition parties to contribute constructive ideas that would promote peace and stability, adding that they have a responsibility to offer alternatives that would strengthen the country.
“Even when they disagree on some grounds, they are under obligations to provide credible and useful ideas that can make our nation better and greater. Unfortunately, they have not passed this critical test of opposition democracy,” he said.
The Socio-Economic Rights and Accountability Project (SERAP) has called on Senate President, Godswill Akpabio, and Speaker of the House of Representatives, Tajudeen Abbas, to refer allegations of the diversion or non-accounting of over ?6.3 billion in constituency project funds to anti-corruption agencies for investigation and possible prosecution.
The group also urged the National Assembly leadership to ensure that anyone found culpable is prosecuted where sufficient admissible evidence exists, while all diverted or unaccounted public funds are recovered and paid into the treasury.
In a letter dated June 27, 2026, and signed by its Deputy Director, Kolawole Oluwadare, SERAP said the allegations were contained in the Auditor-General of the Federation’s 2022 Annual Report, published on September 9, 2025.
The organisation disclosed this in a statement signed and released by Oluwadare, yesterday.
SERAP also asked Akpabio and Abbas to disclose the identities of contractors and companies, including their shareholders and beneficial owners, that allegedly received constituency project funds but failed to execute the projects.
It gave the National Assembly seven days to act on its recommendations, warning that it would institute legal proceedings should the legislature fail to respond.
“We would be grateful if the recommended measures are taken within seven days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the National Assembly to comply with our request in the public interest,” the letter stated.
It said, “The allegations involve several federal ministries, departments and agencies, including the Environmental Health Registration Council of Nigeria (EHORECON); the Federal College of Animal Health and Production Technology, Volm; the Federal Polytechnic, Udana; the National Agency for the Prohibition of Trafficking in Persons (NAPTIP); and the National Institute of Legislative and Democratic Studies (NILDS).
“The Auditor-General identified numerous cases of payments into private bank accounts, contracts awarded without due process, payments for contracts not executed or services not rendered, undocumented expenditures, inflated contracts, procurement irregularities and failures to account for public funds, recommending in each case that the funds be recovered and remitted to the treasury.
“According to the 2022 audited report, contained in pages 367 to 396, the Environmental Health Registration Council of Nigeria (EHORECON or Council) Abuja paid over ‘N22 million [N22,944,565.16] into the private account of some members of staff of the Council from the Constituency Projects Fund Account.
“There ‘was no evidence of the utilization of the funds and no explanations on the purpose for the payment of such amount into the individual accounts.”
SERAP added, “The Council (EHORECON) also in 2021 ‘awarded suspicious consultancy contracts of over N12 million [N12,030,818.29] for the development of Modern Abattoirs in Kebbi State and the supervision of 7 projects in Kebbi, Jigawa, and Headquarters Abuja.
“The money was to ‘produce bills of quantity, architectural design, structural design, mechanical design, and electrical designs for the contracts and supervision.’ But ‘the ‘items could not be found.’”
Altogether, SERAP said the Auditor-General’s 2022 report alleged EHORECON paid more than ?1.8 billion in constituency project funds through questionable transactions.
For the Federal College of Animal Health and Production Technology, Vom, SERAP said the institution “in 2022 reportedly ‘paid over N279 million [N279,700,500.00] to 3 contractors to empower and train youths in selected vocational areas in Borgu and Kontagora, Niger State, train women and youths in entrepreneurship in Niger East Senatorial District and to train youths and women in agro production and self-reliance in Barki Ladi/Riyom Federal Constituency, Plateau State.
“But the money was paid to the contractors without any document.’”
Other irregularities involving the college include another ?279.7 million in mobilisation fees allegedly paid without documentation, and more than ?629.4 million paid to unqualified contractors for various constituency projects without evidence of due process, contract advertisements or details of the contractors.
SERAP further alleged that the Auditor-General’s report identified multiple financial irregularities involving the Federal Polytechnic, Ukana, Akwa Ibom State, including over ?407 million allegedly paid as mobilisation fees without supporting documents, more than ?399 million paid to unqualified contractors, contracts allegedly inflated by over ?192 million, over ?279 million paid for projects not fully executed, ?50 million allegedly paid for an unexecuted borehole project, and more than ?83 million disbursed without the required documentation or approvals.
It also alleged that NAPTIP reportedly irregularly awarded contracts worth over ?21.8 million, paid more than ?176.8 million for logistics and consultancy services without supporting documents, and disbursed over ?89.6 million and ?4.4 million for projects that were allegedly not executed.
The report also alleged that NILDS failed to submit audited financial statements for 2012 to 2022, did not remit over ?15 million in stamp duties, and spent ?1.6 million without authorisation from the Office of the Accountant-General of the Federation.
SERAP said the report recommended the recovery of the affected funds and their remittance to the treasury.
It argued that corruption in constituency projects disproportionately affects poor and vulnerable Nigerians by diverting resources meant for public services and development.
It added that the National Assembly, in exercising its oversight responsibilities, should demonstrate leadership by ensuring accountability in the management of constituency project funds.
The organisation further argued that the allegations, if established, would amount to breaches of the Constitution, the Fiscal Responsibility Act 2007 and the Public Procurement Act 2007, which require transparency, accountability and due process in the management of public resources.