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Daniel Adaji
Allegations of contract fraud and manipulation have rocked Nigeria’s power sector, with contractors revealing how Ministries, Departments, and Agencies (MDAs) falsify financial records to favour cronies and demand illegal kickbacks before awarding contracts.
Pointblanknews.com gathered from contractors in the power sector that most MDAs executing electrical projects often break into sealed bid documents to alter financials, deliberately skewing the process to favour pre-selected companies.
One of them disclosed, “Before now during bidding processes, there was technical bidding before financials but lately they now do technical and financial processes the same day and put all your documents into the box and when you come around, you’ll notice that your financials have been tampered with.”
They alleged that successful bidders are later compelled to pay between three to 10 per cent of the contract sum in cash, under the guise of “administrative charges,” which are not officially captured in the procurement documents nor paid into government accounts.
“Sometimes it is written in the document they present to us but that 10 per cent, you were not told to capture it in your costing,” another contractor said. “If the contract is awarded, the actual money for the project is reduced and the contractor is unable to complete or cut corners.”
These shady practices, they warned, are forcing many contractors to compromise safety standards by using inferior materials or hiring unqualified workers just to execute projects. Some MDAs reportedly deduct unexplained fees from approved budgets, citing dubious costs such as site clearance and signage, which are never implemented.
Meanwhile, the President of the Association of Public Policy Analysis, Princewill Okorie, added his voice to the growing concern during the Nigeria Electricity Safety Industry workshop held Thursday in Abuja. He alleged that MDAs now demand as much as 30 to 40 percent in bribes before awarding contracts, often sidelining competent bidders who refuse to comply.
Okorie said, “Due process in procurement of contracts awards in the electricity sector is another issue affecting safety standards, regulations and enforcement in the sector. Contractors in the power sector have been complaining of abuse… this has given rise to electricity project[s] being given to companies that lack competence in handling electricity projects.”
He warned that such corruption violates the Electricity Act 2023, particularly Section 176(m), and has resulted in the engagement of quack contractors lacking the Nigerian Electricity Management Services Agency (NEMSA) Competency Certificate. “This promotes the use of substandard materials and use of quacks… thereby violating provisions of Section 176(m) of Electricity Act 2023,” he said.
Similarly, Okorie raised concerns about the rising number of unqualified electricians operating across Nigeria due to lack of funding for technician training.
“Our research has shown that there are 10 electrical technicians practicing electrical installation in the 8,809 electoral wards in the country without NEMSA electrical installation competency certificate,” he said. “This means we have a minimum of 88,090 electrical installers in the country without competency certificate. This portrays danger and should be addressed.”
He called on the National Assembly to intervene by appropriating funds to empower electrical technicians, enabling them to obtain necessary certification and improve public safety.
These revelations add to mounting cases of procurement fraud in Nigerian MDAs, raising fresh concerns about safety, transparency, and accountability in the implementation of public projects.
As of the time of filing this report, the Bureau of Public Procurement had yet to respond to Pointblanknews.com’s inquiry regarding measures it is taking to safeguard the rights of contractors.