The Federal Ministry of Power has come under fire after the Auditor-General of the Federation uncovered financial irregularities totaling over N100 billion. The findings, contained in the Auditor-General’s 2022 Annual Report on Non-Compliance (Volume II), reveal a litany of breaches in public finance rules, raising serious questions about accountability and governance in the ministry.

The report highlights infractions spanning unaccounted funds, procurement violations, unauthorised expenditures, and undocumented transfers to key power projects. According to the audit, the ministry’s 2021 financial operations alone accounted for irregularities worth N100.37 billion.

A detailed examination of capital cash balances revealed a discrepancy of N230.8 million between the Ministry’s records and the Government Integrated Financial Management Information System (GIFMIS). While a closure certificate signed by a three-member committee from the Office of the Accountant-General of the Federation indicated a capital cash book balance of N15.59 billion as of December 31, 2022, GIFMIS records showed N15.357 billion — a gap that remains unexplained.

The report noted: “Audit observed that a certificate of closure of the capital cash book was signed by a three-member committee from the Inspectorate Department of the Office of the Accountant-General of the Federation. The total capital warrant lines on the GIFMIS platform stood at N40.82 billion, with total expenditure of N25.46 billion. The difference between the Ministry’s cash book balance and the GIFMIS record, amounting to N230.79 million, remained unaccounted for.”

These revelations place the Ministry of Power alongside a growing list of federal agencies flagged by auditors for alleged mismanagement of public funds. The report also identifies unaudited contracts, procurement breaches, and unauthorized foreign travels, pointing to systemic weaknesses in internal controls that could allow for further diversion of public resources.

With the report now transmitted to the National Assembly, stakeholders are calling for urgent interventions to strengthen fiscal discipline and accountability within the power sector, whose efficiency is critical to Nigeria’s economic growth.