The National Population Commission (NPC) awarded and paid for contracts related to the census worth billions of naira without proper proof of delivery. This is according to the Auditor-General for the Federation, who also said the NPC inflated some contract prices and broke procurement rules.
These findings are from the Auditor-General’s 2024 Annual Report on Non-Compliance, which was submitted to the National Assembly in July.
The report looked into the commission’s activities for the 2023 financial year. It identified several breaches linked to contracts for Personal Digital Assistants (PDAs), mobile device management, local content, information technology infrastructure, and other census-related purchases.
The irregularities involved over N245 billion in contracts and payments. The Auditor-General blamed weaknesses in the NPC’s internal control system for these issues. The report recommended that the Director-General of the commission account to the Public Accounts Committees of the National Assembly and recover billions of naira to remit to the Treasury.
In many cases, the NPC did not answer the audit questions. As a result, the Auditor-General said the findings stand until the commission follows the recommendations.
During the 2023 audit period, Ojogun Osifo was the Director-General of the NPC. He was appointed by the late former President Muhammadu Buhari in August 2022, and his tenure is set to end in July 2026. President Bola Tinubu has appointed Abuh Muhammed to take over afterward.
Issue 1: N131.5 billion paid for PDAs without proof of delivery
The biggest issue found was N131.56 billion paid for 800,000 PDAs and accessories meant for the 2023 population and housing census.
According to the report, the NPC awarded contracts worth N131 billion to six contractors between December 1, 2022, and May 2, 2023.
The NPC claimed it had received 760,000 of the 800,000 devices. But the auditors said the NPC could not provide solid proof that the devices were delivered.
The report stated there were no store receipt vouchers, delivery notes, waybills, or inspection reports to back up the receipt of the devices. Instead, the commission relied on handwritten notes on unofficial papers.
The audit team was also not allowed to physically check the places where the devices were said to be stored or used.
The Auditor-General pointed out that this failure was due to weaknesses in the NPC’s internal control system.
This finding broke paragraph 708 of the Financial Regulations, which says payments should not be made for goods not supplied or services not done. It also mentioned paragraph 603(i), which states payment vouchers must have full details and be backed by relevant documents.
The NPC did not respond to the query.
The Auditor-General recommended that the NPC Director-General explain to the Public Accounts Committees about the N131.56 billion, recover the money, and provide evidence of the remittance to the committees.
The report also suggested sanctions under paragraphs 3106 and 3115 of the Financial Regulations for irregular payments and not accounting for public funds.
Issue 2: Inflation of three PDA contracts by N1.45 billion
The auditors found that the NPC inflated three PDA contracts by a total of N1.45 billion.
The report said the Bureau of Public Procurement (BPP) approved the supply of 80,000 Gisen Tab A7 Lite 8 devices for N7.36 billion. However, the NPC awarded a contract for Seedstar PDAs for N7.85 billion, which led to an alleged increase of N485.57 million.
The auditors noted that the BPP-approved Gisen devices had been tested and certified for compatibility with biometric applications, encryption, and census data capture software.
On the other hand, the Seedstar devices had no BPP approval and were not recognized as original equipment manufacturers. They also had weaker processors, lower resolution, and shorter battery life, according to the report.
The auditors said this created a risk of device failure and inefficiency during enumeration.
In another instance, the BPP approved a contract for 70,000 Digi Tab A7 devices for N6.399 billion. The NPC then asked the contractor to supply unspecified Tab A7 Lite devices for N6.865 billion, leading to an alleged increase of N465.34 million.
A third contract for 50,000 Itec Tab A7 devices and accessories was also approved by the BPP at standard prices. The NPC later directed the contractor to supply Tab A7 Lite devices at inflated unit rates, resulting in an increase of N496.72 million.
Overall, these three contracts had a combined alleged inflation of N1.447 billion.
The Auditor-General stated that these actions broke Section 31(3) of the Public Procurement Act 2007, which forbids price changes or significant changes to bids after the procurement process.
The report pointed out risks of diversion and loss of government funds, and the NPC did not respond to the audit query.
The Director-General was asked to account for the N1.447 billion, recover it, and remit it to the Treasury while providing evidence of payment to the National Assembly.
Issue 3: N4.43 billion census technology subscription questioned
The report also raised concerns about the NPC’s handling of a N4.429 billion Mobile Device Management contract.
This contract was awarded on April 19, 2023, for the 2023 population and housing census.
But the auditors found a mismatch between the award and the executed agreement. While the award was for the Mobile Device Management contract, the executed agreement called it the “Development and Implementation of a Mobile Device Management Solution.”
The NPC paid the full N4.429 billion on May 15, 2023, through voucher NPC/CC/1966/2023.
This payment came nearly three weeks after the census was officially postponed on April 29, 2023.
The auditors pointed out that the subscription was time-sensitive and expired without being used for census purposes. This meant the project did not get any operational benefits from it.
The Director-General of the commission reportedly told the auditors that the subscription was used “in the course of carrying out normal official activities.”
But the Auditor-General said no verifiable proof was provided to back up this claim.
The report said this explanation did not address the concern because the subscription was specifically procured to manage 800,000 census devices, not for routine office work.
The auditors noted that using such a high-value license for daily operations did not show value for money and suggested wastefulness.
The finding linked to paragraph 415 of the Financial Regulations requires officers responsible for spending to exercise due economy.
The audit team said the NPC’s lack of response meant the finding still stands.
The Director-General was told to explain to the National Assembly why the subscription was used for routine operations instead of census activities. He was also asked to recover and remit N4.429 billion to the Treasury and provide evidence of the remittance.
The report recommended sanctions for irregular payments.
Issue 4: N96.8 billion local content contract breached BPP directive
The Auditor-General also accused the NPC of ignoring a BPP directive on local content in the procurement of PDAs worth N96.8 billion.
The report mentioned a BPP Due Process Report dated November 15, 2022, which directed the NPC to ensure that Zinox Technologies Limited and TD Africa did not take part as local content suppliers. This was because they were already acting as representatives of the original equipment manufacturer for the same procurement.
Despite this directive, the NPC awarded a contract worth N85.27 billion for 480,000 PDAs and accessories to a company covering the 60 percent foreign content approved by the Federal Executive Council.
The auditors noted that the commission later gave a further N11.57 billion contract to the same company for 80,000 PDAs and accessories. This was despite the BPP advising that the company should not be involved in the 40 percent local content part.
The Auditor-General said this arrangement allowed one supplier to control both foreign and local content, effectively shutting out local firms from the project.
The report said this decision weakened procurement governance. It also undermined the local content policy's goals, including fair competition and the growth of domestic capacity.
The value of the affected contracts was put at N96.8 billion, with risks of diversion and loss of government funds identified.
Once again, the NPC did not answer the query.
The Auditor-General recommended that the NPC Director-General account for the N96.8 billion, recover the money, and remit it to the Treasury. He was also told to provide evidence to the National Assembly.
Failure to do so should attract sanctions for irregular payments under paragraph 3106 of the Financial Regulations.
Issue 5: N6.23 billion ICT project awarded without bill of quantities
The audit also found a N6.23 billion ICT contract carried out without an approved Bill of Quantities (BOQ).
The NPC awarded this contract for supplying, installing, and implementing ICT components for the 2023 census. It included building an ICT Disaster Recovery Centre in Kaduna.
The Auditor-General said the contractor built the ICT facility without an approved BOQ.
The auditors described the BOQ as an important document for determining material needs, labor inputs, and unit costs.
Its absence left the NPC and the contractor without a basis for assessing costs and project needs.
The report stated that this situation made pricing decisions and material specifications open to arbitrary handling. This created risks of inflated claims, hidden costs, and poor oversight.
It also made it hard for the commission to monitor performance, check value for money, and ensure that the infrastructure met required technical standards.
The auditors noted that not having a BOQ raised the chance of cost increases, material shortages, and disputes after construction.
This finding linked to Section 16(1) of the Public Procurement Act 2007, which requires public procurement to be done transparently and fairly, ensuring accountability and law compliance.
The risks identified included diversion and loss of government funds.
The NPC did not respond to the query.
The Auditor-General recommended that the Director-General account to the National Assembly for the N6.23 billion, recover it, and remit the money to the Treasury. He was also told to provide evidence of the remittance.
Issue 6: N4.73 billion ICT contract awarded to allegedly unqualified firm
The report also criticized the awarding of a N4.735 billion ICT contract to a contractor who the auditors said did not have the needed skills and qualifications.
This contract covered the supply, installation, and implementation of ICT components for the 2023 National Population and Housing Census.
The Auditor-General stated that the contractor submitted a conditional Advance Payment Guarantee instead of the required unconditional guarantee. The company was also not registered with necessary professional bodies as stated in the tender invitation.
The auditors noted that the contractor was not recognized as an original equipment manufacturer in Nigeria.
The report said giving a high-value ICT contract to a company without proven technical skills, professional certifications, and industry recognition undermined the trust needed for the project.
The Auditor-General linked this finding to Section 23(1) of the Public Procurement Act and paragraph 2909 of the Financial Regulations, which require bidders to meet specific qualifications and eligibility criteria.
The NPC again did not respond to the audit query.
The Auditor-General recommended that the Director-General account to the National Assembly for the N4.735 billion, recover it, and remit the money to the Treasury. The report said the finding would stay valid until the recommendations were followed.
What next? Auditor-General seeks recovery of billions
Throughout the findings on the NPC, the Auditor-General repeatedly pointed out risks of diversion and loss of public funds. He connected these irregularities to weaknesses in the NPC’s internal control system.
The report’s recommendations put the onus on the Director-General to explain to the National Assembly, recover disputed payments, and remit the funds to the Treasury.
The Auditor-General also mentioned that the NPC failed to respond to the audit queries. Therefore, the office said the findings remained valid until its recommendations were put into action.
These findings raise serious questions about the commission’s procurement practices as it prepared for the postponed 2023 census. This includes how it handled the procurement of hundreds of thousands of digital devices and the necessary ICT infrastructure.
The report indicates that the problems went beyond paperwork. They included alleged payments made without proof of delivery, changes to BPP-approved specifications and prices, non-compliance with local content directives, payments for time-sensitive services after the census was postponed, and awarding a sensitive ICT contract to a contractor deemed unqualified.
The Auditor-General recommended that the relevant amounts be recovered and sent to the Treasury, with sanctions applied if the commission fails to account for the funds or address the highlighted breaches.
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