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FG disburses N2.4bn for projects, but sites remain abandoned

BY MOTOLANI OSENI

Tracka, BudgIT’s service delivery monitoring platform, has uncovered that N2.4 billion was disbursed to 17 contractors for 15 projects across nine states—yet none of the contractors has commenced work.

Among the projects flagged are N401 million paid 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 LGA, linking northern and southern Nigeria; N153 million paid to Icent Light Ltd between August and November 2023 under the National Institute for Construction Technology, Uromi, for fencing, landscaping, and completing Onicha-Uku Town Hall and Event Centre in Aniocha/Oshimili, Delta; and N88 million paid to A3 Interbiz Link Service Limited in December 2023 under the Pharmacist Council of Nigeria for constructing and equipping a primary healthcare centre in Adedeji Community, Ikirun, Osun State.

These and other payments totalling N3.9 billion for abandoned projects were highlighted in Tracka’s 2023/2024 report, Achieving National Development through Efficient Service Delivery, launched on 30 January 2025 in Abuja.

The report, which monitored 1,404 projects worth N282.5 billion across 25 states, found that 720 projects (51%) were completed, 332 (24%) were ongoing, 129 (9%) were either abandoned or fraudulently executed, and 223 (16%) were not executed.

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The report also ranked Ministries, Departments, and Agencies (MDAs) by project implementation rates, with the Universal Basic Education Commission (UBEC) leading at 78% completion, followed by the Federal Ministry of Agriculture (68%) and the Nigerian Rural Electrification Agency (65%). However, the Lower Benue River Basin Development Authority (20%) and the Ministry of Niger Delta Affairs (16%) recorded the lowest implementation rates, reflecting inefficiencies in project execution.

BudgIT’s Country Director, Gabriel Okeowo, expressed concern over the non-execution of public projects despite the disbursement of funds. He stated, “Despite calls for increased capital expenditure, our tracking exercise shows that capital projects remain a major conduit for embezzlement. Poor oversight and collusion between MDAs and contractors continue to undermine execution, leading to outright abandonment. With Nigeria’s infrastructure deficit, urgent action is needed to ensure proper project implementation.”

Head of Tracka, Ayomide Ladipo, called on the government and anti-corruption agencies to hold defaulters accountable and prevent further financial leakages. He also urged the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC) to investigate discrepancies in the 2023 budget and prosecute erring contractors.

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