Fresh questions have been raised over the Federal Government’s social intervention programme after the Auditor-General for the Federation disclosed that auditors could not verify how ₦33.75 billion transferred to more than 3.29 million households across 35 states was distributed.
The revelation is contained in the 2024 Annual Report on Non-Compliance/Internal Control Weaknesses issued by the Office of the Auditor-General for the Federation.
The audit examined activities of the National Cash Transfer Office (NTCO) during the 2023 financial year and uncovered several weaknesses in the handling and documentation of public funds.
Where Did The ₦33.75bn Go?
According to the report, the Federal Government electronically transferred ₦33.751 billion to 3,295,207 households and beneficiaries selected from the National Social Register and enrolled on the National Beneficiary Register across 35 states.
However, auditors said the documents presented by the NTCO were not enough to establish the identities of the people who actually received the money.
The payment vouchers reportedly did not contain complete beneficiary details.
Even more troubling, auditors said they were unable to obtain the Remita statement required to compare the people who received the funds with names contained in the National Social Register and National Beneficiary Register.
The report said access to the Remita records was allegedly obstructed by accounts staff, frustrating the audit process.
This, according to the Auditor-General, made it difficult to determine whether the beneficiaries were genuine and raised concerns about possible payments to fictitious or ineligible persons.
NTCO Asked To Explain Or Refund The Money
Following the findings, the Auditor-General recommended that the National Programme Manager appear before the relevant Public Accounts Committees of the National Assembly and provide evidence showing that the money reached the intended beneficiaries.
Where satisfactory evidence cannot be produced, the report recommended recovery of the affected funds and payment into the Treasury.
The report also stated that the management of the National Cash Transfer Office failed to respond to the audit query.
Another ₦36.74bn Payment Flagged
The concerns did not end with the ₦33.75 billion cash transfers.
Auditors also questioned ₦36.744 billion paid through 215 vouchers in December 2023 without the required prepayment audit.
The transactions were allegedly processed before being examined by the Internal Audit Unit, contrary to existing financial regulations.
The Auditor-General warned that the procedure exposed public funds to possible misapplication or diversion and called for officials to account for the money before the National Assembly.
₦4.6bn In Transactions Without Vouchers
Auditors further identified 101 transactions worth ₦4.616 billion for which the corresponding paid vouchers were not made available for examination.
Without the vouchers, auditors said they could not properly scrutinise the expenditures.
Officials were therefore advised to account for the funds or have them recovered and returned to the Treasury.
₦350m Also Unaccounted For
Another finding involved approximately ₦3.09 billion released to states for the enrolment of beneficiaries who did not have bank accounts.
Although documents covering ₦2.74 billion disbursed to 34 states were presented, auditors said they could not account for the remaining ₦350.18 million.
Supporting documents, including beneficiary lists, attendance registers, photographs, enrolment reports and acknowledgements, were also reportedly missing in some cases.
The Auditor-General recommended recovery of the ₦350.18 million if satisfactory explanations and evidence were not provided.
₦393.71m Refund Could Not Be Confirmed
The audit also examined ₦393.71 million reportedly returned by nine State Cash Transfer Units after planned enrolment exercises were cancelled due to insecurity, disasters and other circumstances.
But auditors said the NTCO failed to provide evidence confirming that the money was actually credited into the Consolidated Revenue Fund.
Relevant Remita inflow statements and payment slips were reportedly unavailable.
Payment Providers Received ₦280m Advance
The Auditor-General also raised concerns over ₦280.42 million paid as mobilisation fees to Payment Service Providers.
The payment represented a 30 per cent advance, but auditors said it was made without an Advance Payment Guarantee.
They also questioned the procurement process, noting that the relevant files lacked evidence of pre-qualification, bidding and technical and financial evaluations.
The report warned of the risk of government paying for services that might not be executed and recommended recovery of the money where appropriate.
₦89.5m Worth Of Goods Missing From Store Records
Auditors further discovered that goods worth ₦89.51 million purchased by the NTCO were not recorded in its store ledger.
The payment vouchers reportedly lacked the necessary Store Receipt and Store Issue Vouchers needed to track the movement of the items.
The audit also found that the agency’s store ledger had not been updated since 2020.
₦17.42m Diesel Spending Raises More Questions
The final major finding involved ₦17.42 million spent on diesel through cash advances issued to staff.
Auditors faulted the procurement arrangement, saying purchases above the ₦200,000 threshold should have gone through the appropriate contract process.
The report further stated that the items purchased could not be physically sighted or traced to the stores.
According to the audit, the procurement method also resulted in an estimated loss of ₦2.18 million in Value Added Tax and Withholding Tax.
Eight Audit Queries, One Major Concern
Across the eight findings, the Auditor-General said the management of the National Cash Transfer Office did not respond to the audit queries.
The report therefore called for explanations, supporting documentation and accountability for the affected funds.
Where officials fail to satisfactorily explain the expenditures, the Auditor-General recommended that the relevant funds be recovered and returned to the Federal Government’s Treasury.
The revelations are now likely to put fresh attention on the management of Nigeria’s social intervention funds and the systems used to identify beneficiaries and track billions of naira meant for vulnerable households.
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