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N99bn wasted on abandoned projects, Tracka’s Report reveals

Tracka, a public accountability unit of BudgIT, has revealed in its latest report that over N99 billion has been squandered on 352 federal government projects that were either abandoned or left uncompleted.

The findings, which were presented by, Tracka’s Head, Ayomide Ladipo, during a review of the organisation’s 2023/2024 field activities on Thursday, January 30, triggered renewed calls for urgent reforms in Nigeria’s budgeting and procurement processes to improve transparency, efficiency, and service delivery.

Between September 2023 and September 2024, Tracka tracked 1,404 federal projects, and uncovered that 223 projects, valued at N79.81 billion, were not executed while another 129, costing N19.81 billion, had been abandoned. 

Altogether, these uncompleted and neglected projects represent a total loss of N99.62 billion—money that should have been used to develop vital infrastructure across the country, Ladipo noted. 

According to the report, only 720 projects were completed, amounting to N91.28 billion, while 332 others remain ongoing, with N91.61 billion allocated to them.

Speaking on procurement fraud and corruption in the public sector while giving his goodwill message, the Economic and Financial Crimes Commission (EFCC) Chairman, Olanipekun Olukayode, condemned the current budgeting system, which he said allocates funds to government agencies without their input.

He argued that this approach leads to failed projects and increased corruption, with procurement accounting for over 90 per cent of public sector corruption in Nigeria.

“One of the major problems we have in Nigeria is the issue of public corruption. When you are talking about public corruption substantially, statistics have shown that more than 90 per cent of public graft, apart from bribery, and all of that, comes through contract and procurement,” the EFCC helmsman said.

He also expressed concerns over the country’s annual budget process, arguing that it hinders effective project implementation. 

He frowned at the practice of ‘envelop budgets’ without consultation with the relevant agencies, saying that this practice leads to inefficiencies and poor accountability.

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“You can’t hold me accountable for what I wasn’t part of. If I’m not part of the preparation of my budget, it will be difficult for me to execute the same budget. This is what has led us to where we are now,” he said. 

Also speaking, the Director-General of the Bureau of Public Procurement (BPP) Adebowale Adedokun, stressed the importance of transparent procurement processes in driving national development.

He described procurement as the “gateway” through which government projects and services reach the people and assured stakeholders that the BPP under his leadership would prioritise accountability, efficiency, and legal access to procurement data.

He emphasised that every government project must now come with a contract management plan to track progress and prevent abandoned projects.

Adedokun stated that the agency had saved over N1.9 trillion through its procurement oversight, preventing funds that “ordinarily would have been siphoned.”

He also disclosed that over N14 trillion had been generated for Nigeria through procurement regulations since 2016, with recent efforts saving $150,000 in just one transaction.

Other details

A further breakdown of Tracka’s findings also highlighted discrepancies in fund disbursement.  Out of the 1,404 projects tracked, it noted that payment data was available for only 671 projects, with N178 billion disbursed to 614 contractors.

The report revealed that many contractors received payments without delivering on their obligations.

Some examples of failed projects cited in the report include the construction of Tudun Wuss-Wandi-Baraza-Durr-Zumbulpolchi-Dot-Kwanar, roads in Bauchi State, where N205 million was allocated. However, after multiple payments totalling N1.4 billion to Datum Construction Nigeria Ltd., the roads remain in disrepair.



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Also cited was the rehabilitation of roads in Nasarawa State, where N1.18 billion was allocated, but after N401 million was disbursed to Mainstream Contractors Nigeria Ltd., no project was done.

The report further highlighted several systemic issues fuelling the abandonment and non-completion of projects, including alleged interference by the National Assembly, poor oversight by Ministries, Departments, and Agencies (MDAs), and a lack of transparency in the management of public resources. 




     

     

    It also accused the National Assembly of inflating and inserting projects into the budget for personal gains. In the 2024 budget alone, 7,447 projects worth N2.24 trillion were inserted, with the Federal Ministry of Agriculture having the highest number of such projects, according to the report.

    On Freedom of Information (FOI)response rate, Ladipo said: “This year, we wrote 377 letters to the MDAs, seeking updates on projects assigned to them. Coincidentally, we again recorded a 2.1 per cent response rate as we did in 2022, but as against one respondent who acted within the seven days as stipulated in the FOI Act last year, five of them did in 2023. “

    Earlier, the Country Director of Budgit, Gabriel Okeowo, praised the invaluable contributions of its Tracka unit responsible for analysing, evaluating, and reviewing budgets. 

    Okeowo stated that over the past 11 years, Tracka had continuously worked to assess how government spending impacts local communities, focusing particularly on capital projects. 

    Usman Mustapha is a solution journalist with International Centre for Investigative Reporting. You can easily reach him via: umustapha@icirnigeria.com. He tweets @UsmanMustapha_M

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