At the time of this report, Dataphyte could not access the OTP portal. Thus, unable to review data on the portal for the last two quarters of the year, July-December 2021.
The Ministries, Departments and Agencies (MDAs) of the Federal government paid out the sum of N6.76 billion between April-June last year with vague or zero descriptions.
In December 2019, President Muhammadu Buhari launched the Open Treasury Portal (OTP). This was primarily to ensure that there is transparency in government spending.
The Transparency Policy Implementation Guidelines mandated all MDAs to publish the full details of all payments. These details must include the name of the beneficiary, amount, and description/purpose for each payment.
With this, MDAs account for every penny and the public knows the purpose. The belief is that it will enhance transparency, particularly in government spending.
However, years after the federal government launched the OTP, issues of compliance by the MDAs persist.
Dataphyte has noted in previous reports how federal MDAs make payments without stating the purpose of the transactions. Thus, raising questions about the government’s commitment to its transparency and accountability initiative.
A review of the data on the OTP revealed the federal government through its MDAs, paid the sum of N1.30 trillion in the second quarter of 2021. Of this sum, N6.76 billion had vague or zero description. This made it difficult to tell exactly what the MDAs bought and makes tracking also difficult.
In the previous quarter, federal agencies paid the sum of N790 million but provided no description, compared to the Q2 figure of N6.76 billion. This is a 755.18% increase. The increase in payments without descriptions in the 2nd quarter is indicative that when there is no deterrent for violations, the actions will increase.
A breakdown of the payments with zero or vague descriptions in April 2021 showed that the Presidential Air Fleet (State House) made three separate payments to the Presidential Air Fleet Naira Transit Account. The three payments summed up to N4.83 billion, all lacking any form of description. The ministry of Niger Delta also made two payments on April 1 to the Federal Inland Revenue Service, without description.
The same April, the Agricultural Research Council of Nigeria, made a payment of N20 million and N5.38 million to the National Broadcasting Commission and GALAXY BACKBONE, respectively. However, the research council described both payments as “contract”, with no further details provided.
It was the same for the Federal University of Agriculture, Makurdi, which paid the sum of N7.59 million to Center Field Engineering LTD. It only described it as “construction”.
In May 2021, the Agricultural Research Council of Nigeria made two separate payments, both also described as “contract”. One payment (N24.89 million) was to SMV Nigeria Limited, and the other (6.90 million) to Adeyemi Apanpa & CO.
The Federal Polytechnic Damaturu simply described the two payments it made in May 2021 as “OK”.
The Polytechnic paid N52.58 million to MOHBEEL POINT RESOURCES LTD and N19.59 million to PINNACLE WORLDWIDE SOLUTIONS LTD, which summed up to N72.18 million.
The total money paid out in June 2021 without a description was N838.5 million.
The highest single payment was N380 million by NIPSS Kuru. Just like others, NIPSS failed to state the purpose of this transaction. The Nigerian Armed Forces Resettlement Centre in Lagos followed suit with a payment of N130 million.
The Nigerian Police Service Commission, Federal University of Petroleum Resources, Federal Teaching Hospital, Gombe, and other MDAs also made payments, all of which did not provide any information regarding the purpose of the transactions. These MDAs paid a total sum of N328.07 million without description.
At the time of this report, Dataphyte could not access the OTP portal. Thus, unable to review data on the portal for the last two quarters of the year, July-December 2021.
Implications
Among others, the implication of payments with vague or zero descriptions by MDAs is that they could easily misappropriate such money since the full details of the contracts are unknown.
Abel Akani, a research and policy expert at BudgIT shared this same view. He noted that the occurrence of payments without descriptions could lead to misappropriation of funds, lack of transparency, accountability, and sometimes outright fraud if there are no records of what public funds are used for.
Uche Charles Esq, also expressed worries that payments with vague or no descriptions by government agencies, defeat the goal and the very essence of why the OTP was established.
He suggests that the government and anti-corruption agencies need to take decisive actions against MDAs that go contrary to the OPT guidelines and financial regulations.