The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has identified contract fraud as the most pervasive form of corruption in Nigeria’s public sector, warning public office holders to comply strictly with procurement laws and financial regulations.
Olukoyede gave the warning on Thursday while delivering a lecture titled, “The Role of the Economic and Financial Crimes Commission in Improving Accountability in the Public Service,” at a two-day induction programme organised by the Bureau of Public Service Reforms for the Chairman, Chief Executive Officer and members of the Governing Board of the South-South Development Commission (SSDC) in Abuja.
Speaking on the programme’s theme, “Institutional Governance and Regulatory Compliance,” the EFCC Chairman stressed that accountability in public service requires public resources to be managed ethically, efficiently and in the best interest of citizens. He lamented that corruption continues to undermine prudent management of government resources and national development.
“Annual losses to corruption in Nigeria’s public service run into billions of naira as resources meant for the provision of physical infrastructure and social services are often converted to private use by public servants,” Olukoyede said.
He listed the major forms of corruption in the public sector to include outright theft of public funds, diversion of government resources, bribery and kickbacks, misappropriation of funds, procurement and contract fraud, payroll and pension fraud, as well as duty tour allowance fraud.
Drawing from his experience in regulatory compliance, Olukoyede described contract fraud as the most common form of corruption within public institutions.
“From my experience in regulatory compliance, by far the most common form of corruption within the public service space is contract fraud, where those who lead government establishments set out to enrich themselves by rigging the procurement process,” he said.
According to him, contract fraud frequently manifests through contract splitting to evade approval thresholds, bid manipulation in favour of preferred contractors, the award of contracts to unqualified companies, and payments for poorly executed or abandoned projects.
The EFCC Chairman recalled that the Commission was established in 2003 to combat corruption and economic and financial crimes through investigations, prosecutions, asset recovery and public enlightenment.
He, however, acknowledged that the anti-graft agency continues to face challenges, including inadequate manpower and resources, limited public support, delays in the prosecution of high-profile corruption cases and persistent, though largely unsubstantiated, allegations of selective investigations.
Addressing the newly appointed officials, Olukoyede urged them not to see their appointments as opportunities for personal enrichment.
“I imagine that you all have been receiving tons of congratulatory messages on your appointment, and those close to you would have reminded you that this is an opportunity to grab a slice of the proverbial national cake. Please, tread with caution. Public service is not an invitation to loot the treasury,” he warned.
He advised the officials to familiarise themselves with the Financial Regulations, Public Service Rules and the Public Procurement Act, noting that strict compliance with extant laws and regulations would help them avoid corruption investigations and prosecution.
Olukoyede also warned against engaging in businesses that conflict with public office, operating foreign bank accounts, bidding for contracts from agencies where they serve either directly or through proxies, and conducting official financial transactions outside recognised financial institutions.
“As a member of the SSDC, familiarise yourself with the Procurement Act and be guided. You should not be jostling for contracts from the SSDC either directly or through fronts,” he cautioned.
He further urged the officials to maintain accurate financial records and exercise due diligence before endorsing official documents.
“Before you sign that document, study it. Your signature is your name and integrity. Guard it,” he said.
