Executive Robbers: Document Exposes N376 Million Unapproved Allowances at Nigerian Security Printing and Minting Company

Secrets Reporters

An incriminating document has again unearthed how the Nigerian Security Printing and Minting Company PLC (NSPM), located in Abuja, disbursed over N376 million unapproved allowances to staff in 2020. The findings, buried in the recently released audit by Nigeria’s auditor-general, have raised concerns over internal control weaknesses and the apparent disregard for regulatory financial practices within the institution, which plays a critical role in the country’s economic infrastructure.

According to the audit conducted for the financial year spanning January to December 2020, a total of N376,050,500.88 was paid to staff without requisite approvals from the National Salaries, Incomes, and Wages Commission (NSIWC). This substantial sum comprised N89,982,215.25 disbursed as a 13th-month allowance and N286,068,285.43 allocated for ten categories of other allowances. There was no evidence to justify these payments as compliant with statutory regulations.

The absence of approval from the NSIWC contravenes the agency’s mandate under the NSIWC Act CAP N72, LFN 1999, which stipulates that allowances must undergo regulatory scrutiny. Section 13 of the Act requires all wage-related agreements to be submitted to the commission for advice. Similarly, Paragraph 415 of the Financial Regulations, 2009 mandates strict economic measures in handling government funds, a principle seemingly flouted in this case.

Audit evaluators attributed these anomalies to a weak internal control system within the NSPM. According to the audit, this lapse exposes the organization to risks such as the wasteful expenditure of government resources and the potential diversion of public funds, undermining financial discipline and public trust.

Remarkably, despite the seriousness of these findings, NSPM management failed to respond to the issues raised in the audit report, prompting the auditors to maintain that the observations remain valid, pending management’s implementation of recommended actions. 

The audit report recommended that the NSPM Managing Director appear before the Public Accounts Committees of the National Assembly to justify the disbursement of the N376,050,500.88. 

It further directed the immediate recovery and remittance of the unapproved funds into the Treasury, with evidence of such remittance forwarded to the legislative committees. Failure to act could trigger sanctions under Financial Regulations 3106 and 3115, which prescribe penalties for irregular payments and ineffective management of public funds.

Legal and regulatory frameworks governing public sector financial practices were highlighted in the report. The NSIWC Act empowers the commission to oversee salary structures and allowances in the public service. Meanwhile, the Public Service Rules, 2008, specifically Paragraph 130101, categorically require all monetary benefits to be subject to NSIWC review and appropriate circular issuance. The audit report asserts that the NSPM failed to comply with these provisions.

Meanwhile, this online media had earlier reported some irregularities at the Nigerian Security Printing and Minting Company PLC which were also concealed in the audit.