Nigeria Incurred ₦2.9 Trillion Loss in Three Years Due to Contract Fraud

Ola Olukoyede, the newly appointed Chairman of the Economic and Financial Crimes Commission (EFCC), has revealed that approximately ₦2.9 trillion, intended for various government projects, was siphoned into personal accounts by contractors between 2018 and 2020.

Mr. Olukoyede made this startling disclosure during his Senate screening on Wednesday.

The Senate subsequently confirmed his appointment after the session.

He stated, “I conducted a comprehensive study from 2018 to 2020, focusing on 50 entities in Nigeria, encompassing both individuals and corporate entities. I examined a specific form of fraud – contract and procurement fraud. What I found was that Nigeria suffered a loss of ₦2.9 trillion within those three years.”

Mr. Olukoyede lamented that had the previous EFCC administrations effectively prevented this theft, the funds could have been utilized for crucial government projects.

He stated, “When I put my findings together, I realized that if these funds had not been stolen, they could have financed the construction of 1,000 kilometers of roads, built nearly 200 standard tertiary institutions, educated around 6,000 children from primary to tertiary levels at a cost of ₦16 million per child, constructed more than 20,000 three-bedroom houses across the country, and established world-class teaching hospitals in each of the 36 states of the country, as well as the Federal Capital Territory.”

The new EFCC Chairman highlighted the need for transparency and accountability during his tenure and proposed the introduction of a transactional credit system. This system would discourage Nigerians from buying high-end properties using cash, thereby enabling better monitoring of financial transactions.

Mr. Olukoyede emphasized the significance of providing alternatives to people who wish to lead honest lives by enabling them to meet their basic needs and aspirations without resorting to corrupt practices.

He noted, “The average Nigerian does not own a home. When given the opportunity, they might resort to corrupt activities. Even if they do not have the opportunity, they might create one.”

Furthermore, he underscored the importance of the swift adjudication of fraud cases by suggesting that such cases should not exceed five years from the High Court to the Supreme Court. This approach, he believes, would facilitate the effective functioning of the criminal justice system, thereby complementing the efforts of anti-corruption agencies in combating financial crimes.