Procurement Fraud: The Hidden Monster Draining Nigeria’s Future

Monday Iyke
4 Min Read

On the surface, procurement fraud sounds like a technical crime—something buried deep in government files or hidden in boardroom deals. But for millions of Nigerians, it is the reason why a newly commissioned road develops potholes within months, why hospital equipment breaks down weeks after delivery, and why classrooms meant for children remain empty shells of uncompleted buildings.

This silent monster, according to the Economic and Financial Crimes Commission (EFCC), accounts for more than 90 percent of corruption and fraud in Nigeria. Its reach is vast, stretching from government ministries and construction sites to private businesses.

How It Works

Procurement fraud thrives on deception. A contract is awarded to build a road, supply drugs, or provide electricity. Instead of delivering quality service, corners are cut, prices are inflated, or substandard goods are substituted.

The EFCC lists common tactics:

  • Bid rigging: Competitors secretly agree on who should win a contract.
  • Bribery and kickbacks: Officials are “settled” to look the other way.
  • Over-invoicing: A generator worth ₦5 million is listed as ₦15 million.
  • Product substitution: Hospital beds promised in contracts turn into rickety iron frames on delivery.

For ordinary Nigerians, these schemes mean failed infrastructure, collapsed services, and wasted resources that could have built schools, created jobs, or provided clean water.

Real-World Consequences

Take the story of a rural community that waited years for a health centre. When the project was finally “completed,” the building had no water supply, no working equipment, and only a fraction of the promised beds. Within two years, cracks appeared on the walls. Behind this failure was a web of over-invoicing and product substitution—the hallmarks of procurement fraud.

“It is not just about money lost,” an anti-corruption analyst told Fresh Facts Magazine. “It’s about lives put at risk. A defective bridge, fake drugs, or collapsed classrooms can kill.”

Justice Has Teeth—But Is It Enough?

The law is clear. Under Section 58 of the Public Procurement Act (2007), anyone found guilty faces 5 to 10 years in prison, without an option of fine. Corrupt procurement officers risk dismissal, while companies can be blacklisted for five years and fined up to 25 percent of the fraudulent contract’s value.

The EFCC points to a recent high-profile case: Chandra Singh, an Indian businessman, who was convicted in February 2025 for a procurement scam worth ₦816 million. He received 10 years in prison and was ordered to repay ₦345 million to his victim.

But for every Singh that is caught, many more fraudsters still operate in the shadows.

Why Nigerians Should Care

While procurement fraud may sound distant, its consequences are visible daily:

  • That road that floods after every rainstorm.
  • That hospital without oxygen tanks.
  • That school block where children sit under leaking roofs.

Each failure traces back to contracts awarded and executed dishonestly. The EFCC warns that fighting procurement fraud is not just about jailing offenders—it is about safeguarding public resources and restoring trust in governance.

The Call to Action

The Commission is urging Nigerians to be alert and resist manipulation in contract processes. Citizens, it insists, must ask questions: Who got the contract? At what cost? Was the job delivered as promised?

In the words of the EFCC:

“The fight against procurement fraud is a fight to safeguard public resources, promote fairness, and strengthen national development.”

Until Nigeria closes this silent drainpipe, the dream of real development will remain a moving target.

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