Contract fraud most prevalent corruption in Nigeria's public sector – EFCC boss

Ola Olukoyede, the Executive Chairman of Nigeria's Economic and Financial Crimes Commission (EFCC), has identified contract fraud as the most common type of corruption within the public sector. He issued a stern warning to public officials on Thursday, cautioning them against using their positions for personal enrichment.

Speaking at a two-day induction program for the South-South Development Commission's leadership in Abuja, Olukoyede highlighted that contract fraud often involves manipulating procurement processes to benefit specific individuals or companies. "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 stated.

Olukoyede stressed that accountability in public office means managing funds ethically and efficiently for the benefit of citizens. He noted that corruption significantly undermines effective governance and development, leading to annual losses in the billions of naira. These diverted funds were intended for essential infrastructure and social services.

The EFCC chairman outlined various forms of public sector corruption, including outright theft, resource diversion, bribery, kickbacks, misappropriation, procurement fraud, payroll and pension fraud, and duty tour allowance fraud. He explained that contract fraud can manifest through contract splitting to bypass approval limits, bid manipulation, awarding contracts to unqualified firms, and making payments for incomplete or abandoned projects.

Established in 2003, the EFCC combats economic and financial crimes through investigation, prosecution, asset recovery, and public enlightenment. Olukoyede acknowledged challenges in this fight, such as limited resources and manpower, insufficient public support, and delays in high-profile case prosecutions.

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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.