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Senators padded 2021 budget with N100bn constituency projects, shared proceeds—ICPC Report

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4 years ago

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Independent Corrupt Practices Commission, ICPC  has accused members of the National Assembly of padding annual budgets with constituency projects which were never executed while the budgetary provisions were shared among the members. The body has thus raised alarm on how Senators diverted the money designed for their Senatorial Districts to other non existing projects, thereby denying their constituents from benefiting from dividends of democracy. The agency said it has uncovered how the National Assembly illegally added N20 billion to N100 billion annual constituency projects. The ICPC in its interim  Constituency and Executive Projects tracking exercise report exposed how  the National Assembly embedded additional projects into the 2021 budget of MDAs which has in a long way affected  budget performance as well as distorting developmental planning and implementation in the 2021 fiscal year.

According to the ICPC,  although with the collaboration of the Ministry of Finance, implementation actions were restrained, it was however concerned about the practice as it has become a norm that “even legislative aides and National Assembly staff serving in the appropriation committees also insert projects in the capital budgets of agencies without the knowledge of the legislators or the agencies. In the report, the ICPC cited other areas of  infraction where by in constituency projects for Senatorial districts,  lawmakers were accused of manipulatively awarding to themselves or through cronies companies by sponsor and executing agencies.  The report read: “Budget insertion still remain one of the egregious, yet illegally acceptable phenomena that has distorted the nation’s developmental planning and implementation of developmental programmes. “In addition to the N100 billion appropriated annually for constituency projects, the National Assembly added additional projects into budget of MDAs. This is done to increase the project portfolios of concerned legislators and their influence on MDAs. The value of the insertion were in billions. 

“Analysing the 2021 National Budget alone across key sector of education, water resources, health, power, science and technology, environment, works and agriculture, we found duplications to the tune of over N20 billion.” The report also pointed out that “Contract for the construction and renovation of Blocks of Classroom at the Federal University Staff School, Wakuri Taraba South Senatorial District was executed by a company owned and operated directly by a Senator, a project ICPC alleged was “haphazardly nominated, appropriated and executed in locations that have no need for such projects”. In another development, ICPC alleged another contract infraction in the supplies of water rigs by a particular company to be executed in Taraba South. The Commission had alleged that “just two days after the award of the contract, ‘the said company’, wrote to the executing agency, Lower Benue River Basin Development Authority informing it that it was involved in some sort of arrangements with its sister company in respect of the execution and requested that the contract sum should be paid into the bank account of the company owned by the sponsoring legislator. 

“Funding was therefore made to” the said company owned by the sponsoring legislator.  The Commission alleged that , “the project for the procurement of water rigs to Taraba South, the rig which were never distributed, were distributed and supplied to the sponsor and were later found in the custody of the sponsor, commercialised, and the proceeds paid into the sponsor’s personal bank account. In the report, the ICPC has said that it was able to track a contract for the supplies of 686 water pumping machines to Kebbi Central Senatorial District awarded to a particular company owned by the children of the lawmaker representing the District. The said, “Various other projects were awarded and executed in Kebbi Central by three other companies owned and operated by the biological children of the sponsor”, the Commission alleged. Similarly, the ICPC said in the report that it was able to track the project for the supplies of 19 500KVA transformer to Delta North Senatorial District, two of which “were stolen and sold by an aide of the sponsoring lawmaker and one was found kept in a private house since 2018.

ICPC said, “while the culprit is on the run, the lawmaker has agreed to an undertaken to purchase and deliver to the Commission the two transformers”. In another development, the Commission further cited for example, the project valued at N149m for the training and empowerment of women and youths in Abaji, Kwali Federal Constituency awarded to a relative of the sponsoring legislation. It was also replicated in Kastina Central Federal Constituency where the sponsor singlehandedly executed the contract after which the project said to have valued at N49m was changed from its form and devalued by the lawmaker. In another case,  supply of tricycles to Rivers West Senatorial District as empowerment project, where the sponsor allegedly used one of her cronies (boy) as the contractor. The Commission alleged that “while the contract was never performed, the sum (N30m) was fully paid and shared.

The ICPC has also revealed that some sponsoring legislators sometimes sit projects on the personal properties, which technically vests legal possession and ownership to them. An example was cited from an agricultural empowerment project in Osun West Senatorial District to be a training programme cattle rearing and actual supply for cattle. The BOQ, according to ICPC report, indicated 250 cattle to be procured and distributed to beneficiaries. The report said, “while the intended beneficiaries were trained, no cattle was given to them, instead the lawmaker established a private ranch using the cattle procured with government’s fund.” In Bayelsa Central Senatorial District, the Commission alleged that investigation led it to another youth empowerment scam carried out by the sponsoring lawmaker. The Commission alleged that some of the beneficiaries found in the list were randomly contacted, even as none of them acknowledged  ever receiving any grant.

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Economy

Nigeria champions African-Arab trade to boost agribusiness, industrial growth

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2 days ago

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December 5, 2025

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The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.

The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.

The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.

He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.

“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”

Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”

The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.

With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.

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Economy

FEC approves 2026–2028 MTEF, projects N34.33trn revenue 

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3 days ago

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December 4, 2025

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Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.

The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.

He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.

Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.

The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.

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Economy

CBN hikes interest on treasury Bills above inflation rate

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3 days ago

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December 4, 2025

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The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%. 

The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.

Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.

The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.

Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.

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