Contractors abandoned 129 projects despite payments – BudgIT
A new report by Tracka, BudgIT’s service delivery monitoring platform, has revealed that 129 projects were abandoned despite contractors receiving payments totalling N3.9bn from the Federal Government.
The report, titled “Achieving National Development through Efficient Service Delivery,” was unveiled on Thursday in Abuja and raises concerns about the lack of accountability in Nigeria’s public project execution.
According to a press statement issued after the launch, the report detailed that N2.4bn was disbursed to 17 contractors for 15 projects across nine states, yet work never commenced at these sites.
Among the highlighted cases was the N401m payment to Mainstream Contractors in December 2023 under the Federal Ministry of Works and Housing for the rehabilitation of the Welcome-Nasarawa-Farewell road in Nasarawa State.
Despite the payment, no construction activities have begun. Similarly, Icent Light Ltd received N153m between August and November 2023 under the National Institute for Construction Technology, Uromi, for fencing, landscaping, and completing the Onicha-Uku Town Hall and Event Centre in Delta State, yet the project remains untouched.
In Osun State, A3 Interbiz Link Service Limited was paid N88m in December 2023 under the Pharmacist Council of Nigeria for the construction and equipping of a primary healthcare centre in Adedeji Community, Ikirun, but no progress has been recorded.
The statement read, “Tracka, BudgIT’s service delivery promotion platform, which allows citizens to collaborate, track and give feedback on public projects in their communities, has uncovered payments worth N2.4bn to seventeen contractors for fifteen projects across nine states—yet no contractor has commenced work on these sites. Some of these projects include:
“The payment of N401m to Mainstream Contractors in December 2023 under the Federal Ministry of Works and Housing for the Rehabilitation of Welcome-Nasarawa-Farewell from Nasarawa, linking the North and Southern part of Nigeria in Nasarawa LGA, Nasarawa State; N153m to Icent Light Ltd between August and November 2023 under the National Institute for Construction Technology, Uromi, for the Fencing, Landscaping and Completion of Onicha-Uku Town Hall and Event Centre at Aniocha/ Oshimili in Delta; and N88m to A3 Interbiz Link Service Limited in December 2023 under the Pharmacist Council of Nigeria for the Construction and Equipping of PHC Centre in Adedeji Community, Ikirun, Osun State.
“These and other payments worth N3.9bn for abandoned projects nationwide were highlighted in Tracka’s 2023/2024 Report.”
Tracka’s monitoring covered 1,404 projects worth N282.5bn across 25 states, revealing that 720 projects (51 per cent) were completed, 332 (24 per cent) were ongoing, while 129 (9 per cent) were either abandoned or fraudulently executed.
Also, 223 projects (16 per cent) were not executed at all, raising concerns about project accountability and oversight. The report also assessed performance across ten Ministries, Departments, and Agencies, ranking the Universal Basic Education Commission as the best performer with a 78 per cent completion rate, followed by the Federal Ministry of Agriculture (68 per cent) and the Nigerian Rural Electrification Agency (65 per cent).
However, the Ministry of Niger Delta Affairs (16 per cent) and the Lower Benue River Basin Development Authority (20 per cent) recorded the lowest performance, highlighting inefficiencies in project implementation.
Reacting to the findings at the launch of the report in Abuja on Thursday, BudgIT’s Country Director, Gabriel Okeowo, criticised the mismanagement of funds, stating that capital projects have become major conduits for embezzlement and misappropriation.
He blamed poor oversight and collusion between MDAs and contractors for the increasing cases of project abandonment.
“Despite the clamour for increased allocations to capital expenditure by the Federal Government and sub-nationals, our tracking exercise has revealed that capital projects are the largest conduits of embezzlement and misappropriation.
“Poor oversight and collusion between MDAs and contractors undermine project execution, leading to outright abandonment. Given Nigeria’s pressing infrastructure deficits, public project execution must be seriously treated.
“We urge the current administration and anti-corruption agencies to close these loopholes, hold defaulters accountable, and prevent further financial leakages. If left unchecked, Nigeria’s scarce resources will continue to be siphoned off by unscrupulous actors at the expense of national development,” Okeowo said.
Tracka has called on anti-graft agencies, including the Independent Corrupt Practices and Other Related Offences Commission and the Economic and Financial Crimes Commission, to investigate these irregularities in the 2023 budget expenditures and prosecute defaulting contractors.
It has also urged elected representatives to prioritise abandoned projects listed in the report to ensure public funds are effectively utilised for the benefit of Nigerians.
