Procurement Fraud: EFCC educates Nigerians to speak out

The Economic and Financial Crimes Commission (EFCC) has warned Nigerians to be on guard against procurement fraud, describing it as one of the most pervasive forms of corruption threatening accountability and development in the country.

In an awareness post on its official X account on Tuesday, the anti-graft agency recalled that its Chairman, Ola Olukoyede, had revealed in January 2025 that “procurement and contract fraud accounted for more than 90 per cent of Nigeria’s corruption and fraud issues.”

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Procurement fraud, according to the EFCC, involves deliberate manipulation of contract and purchasing processes for personal or organisational gain, usually at the expense of the public. Common schemes include:

• Bid rigging – colluding to fix winners in advance.
•
• Bribery – offering or accepting inducements to influence decisions.

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• Kick-backs – receiving payments in exchange for favourable treatment.

• Over-invoicing – inflating contract prices or quantities.

• Product substitution – supplying inferior goods contrary to contract terms.

The agency noted that such practices occur across industries, including government contracting, construction, and the private sector, leading to massive financial losses, erosion of public trust, and reputational damage.

The EFCC further warned that offenders face stiff penalties under the Public Procurement Act (2007). Section 58 of the law prescribes a minimum of five years and a maximum of 10 years’ imprisonment without an option of fine.

Corrupt procurement officers may also be dismissed, while companies involved risk fines of up to 25 per cent of the fraudulent contract’s value and bans from public contracts for at least five years.

To underscore its point, the commission cited the conviction of Indian businessman, Chandra Singh, who was jailed for 10 years on February 27, 2025, for a procurement fraud involving N816 million. He was also ordered by Justice Ijelu to repay N345 million to his victim.

“The fight against procurement fraud is a fight to safeguard public resources, promote fairness, and strengthen national development,” the EFCC declared, urging Nigerians to remain vigilant and resist manipulation in contract processes.

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