The National Power Training Institute of Nigeria (NAPTIN), the federal agency responsible for training engineers and technicians for Nigeria’s electricity sector, has been hit by a fresh financial controversy following the discovery of irregularities amounting to more than ₦3.6 billion.
Documents obtained by Secrets Reporters revealed ten separate audit findings involving the management of public funds, procurement, revenue remittances, stock records, taxation and expenditure approvals at the Institute.
The largest finding centres on ₦2,771,731,464.25 collected by NAPTIN as tender fees during its procurement processes but allegedly not remitted to the Consolidated Revenue Fund (CRF), the federal treasury account into which such revenue is required to be paid.
Treasury regulations require 100 per cent of tender fees collected in the course of public procurement to be remitted to the CRF without exception.
However, the audit findings showed that more than ₦2.77 billion collected by NAPTIN was not transferred to the federal treasury as required.
The huge amount represents the overwhelming majority of the financial irregularities identified and raises serious questions about the Institute’s management of revenue generated from its procurement activities.
The audit was also reportedly complicated by NAPTIN’s refusal to grant auditors access to some of its records and supporting documents.
According to documents reviewed by Secrets Reporters, the Institute denied auditors access to audit records required to properly scrutinise its financial activities.
The refusal is particularly significant given the constitutional powers of the Auditor-General for the Federation.
Section 85(2) of the 1999 Constitution guarantees the Auditor-General access to the accounts of government agencies for the purpose of carrying out the office’s constitutional responsibilities.
The alleged denial of access therefore raised concerns over the ability of auditors to independently verify the Institute’s financial transactions and supporting documentation.
Another major finding involved ₦547,214,158.13 worth of store items that were reportedly received by NAPTIN but never entered into the Institute’s stock records.
The failure to record the items contravenes the Financial Regulations 2009, which require goods purchased with public funds to be properly documented, recorded and accounted for.
The audit findings therefore raise questions about the whereabouts, utilisation and accountability of goods valued at more than half a billion naira that were reportedly received but not reflected in NAPTIN’s stock records.
The auditors also flagged ₦196,587,875.25 spent on constituency and zonal intervention projects that were executed without approval from the relevant authorities.
A further ₦29,650,030.00 was reportedly spent on purposes different from those for which the money had been budgeted and approved.
The expenditure was consequently identified as a case of misapplication of public funds.
The audit also uncovered ₦24,399,592.33 linked to an irregular contract payment.
Another ₦22,445,500.00 was identified as consultancy expenditure allegedly made outside the required procedures, while ₦17,340,224.95 in contingency payments was similarly flagged for bypassing the prescribed approval process.
The financial discrepancies extended to overpayments, with ₦10,678,497.06 reportedly lost through overpayment.
NAPTIN’s handling of statutory taxes was also questioned in the audit.
The records showed ₦8,364,419.26 in under-deducted statutory taxes and another ₦4,122,233.97 in tax under-remittance to the relevant authority.
Such deductions are statutory obligations and are required to be properly withheld and remitted to the appropriate tax authorities.
When considered collectively, the findings point to widespread weaknesses in NAPTIN’s financial management and internal control systems.
The issues identified cover virtually every major aspect of public financial administration, including revenue collection and remittance, procurement, stock management, project approvals, contract payments, consultancy expenditure, contingency spending, overpayments and statutory tax obligations.
The ₦2.77 billion in unremitted tender fees remains the most significant finding, while the ₦547.2 million worth of store items allegedly left out of the Institute’s stock records represents another substantial accountability concern.
Ahmed Bolaji Nagode is the Director-General of NAPTIN and was at the helm of the Institute during the period covered by the audit findings.
The revelations consequently raise questions about the effectiveness of management oversight and internal controls under the leadership of the Director-General.
They also raise concerns about why billions of naira in public revenue and expenditure could become subject to such significant audit queries within an institution entrusted with developing the technical workforce required to support Nigeria’s electricity sector.
The audit findings do not, by themselves, establish criminal liability against any individual, but they place a substantial burden of explanation on the Institute’s management to account for the flagged funds, reconcile its records and demonstrate compliance with applicable financial regulations.
The Institute would also be expected to explain the circumstances surrounding the non-remittance of the ₦2.77 billion tender fees, the failure to record ₦547.2 million worth of store items, the allegedly unauthorised intervention projects and the other financial transactions queried by the auditors.
The scale of the findings has put NAPTIN’s financial controls under intense scrutiny and could trigger further demands for accountability over the management of public resources at the Institute.