Exclusive: Inside ₦3.4bn NEMA Contract Payments to Months-Old Companies Under Mustapha Habib Ahmed-Led Administration

Secrets Reporters

Some government contracts attract little attention. Others begin to raise questions when the dates of incorporation of beneficiary companies, the amounts involved and the pattern of payments are placed side by side.

Documents obtained by SecretsReporters show payments totaling ₦3,411,486,577.35 made by the National Emergency Management Agency (NEMA) during the tenure of former Director-General Mustapha Habib Ahmed to several companies, many of which were incorporated only months before receiving public funds.

A review of the records shows that a significant number of the companies were registered between January and February 2023 before receiving payments running into hundreds of millions of naira later that year. In several instances, the payment descriptions were either vague, incomplete or absent from the records reviewed.

Under Nigeria’s public procurement framework, companies seeking government contracts are generally expected to meet statutory requirements, including registration with relevant authorities, tax compliance and other conditions prescribed under the Public Procurement Act and related regulations. Depending on the nature and value of a contract, procuring entities may also be required to obtain approvals and certifications through established procurement processes.

The records reviewed by SecretsReporters raise questions about how some of the beneficiary companies were selected, the extent of their prior operational history and the basis upon which certain payments were approved.

Among the companies listed in the documents is Nagurafe Trading Ltd, incorporated on February 1, 2023, with RC Number 2025164. The company received a total of ₦92,929,716.00, including payments of ₦25,664,256.00 and ₦33,981,000.00 on September 28, 2023, and another ₦33,284,460.00 on September 30, 2023.

Bar and Billet Ltd, incorporated on January 20, 2023, received ₦156,371,810.00 through payments made between May and October 2023.

Fuldan Rice Mills Ltd, registered on January 26, 2023, received ₦228,069,158.00. One of the payments reviewed was ₦81,310,032.90 made on June 24, 2023.

Dangizo Garki General Enterprise Ltd, incorporated on January 29, 2023, received ₦340,415,937.00. Records show payments of ₦83,039,412.00, ₦89,690,664.00 and ₦64,621,202.00 were made to the company on May 28, 2023.

Mumanbaba Ventures Ltd, incorporated on January 26, 2023, received ₦86,540,583.00. The records reviewed did not provide detailed descriptions of the services for which the payments were made.

A-Musa Service Ltd, also registered on January 26, 2023, received ₦140,911,759.00, with payments commencing approximately five months after incorporation.

Gadzama Plain Tech Ltd received ₦149,699,821.00. Some of the payment entries reviewed contained limited descriptions of the services rendered.

Other beneficiaries identified in the records include Mai-Kogi Global Ventures & Services Ltd, which received ₦154,877,973.00; Glamtasia Global Concept Ltd, which received ₦84,065,187.00; and Nana Faab Farms Ltd, incorporated on February 10, 2023, which received ₦353,437,320.00.

The documents also show payments of ₦96,041,304.00 to Qee-Wee Services Nig Ltd; ₦123,439,390.00 to Moha-Ali Services Ltd; ₦276,272,228.00 to M.M.A Hybrid Services Ltd; ₦185,009,167.00 to Gabil-Ham Enterprises Ltd; ₦45,555,718.00 to Gadai Industries Ltd; ₦291,560,967.00 to G-Snow Ice Ventures Ltd; and ₦252,522,037.00 to Ameenwase Investment Ltd.

In several cases, the records reviewed by reporters contained limited or no descriptions explaining the precise goods supplied, services rendered or projects executed.

Globe Hub Ventures & Services Ltd received ₦44,884,342.00; Good Length Ventures Ltd received ₦31,885,082.00; Mika Services Ltd received ₦35,325,294.00; while Freestone Investment Ltd received ₦82,513,200.00.

A review of Corporate Affairs Commission records by reporters raised questions regarding the operational status of Freestone Investment Ltd at the time some of the payments were made.

Another beneficiary, Splash Visions Ltd, received ₦92,218,700.00. The company was incorporated on October 13, 2020. Records reviewed by reporters show that changes relating to persons with significant control were filed on August 23, 2023, before the company received payments from NEMA.

A.A Albasu Nigeria Ltd received ₦66,939,884.35. However, reporters were unable to immediately trace corresponding records during their review of available CAC data.

The payment pattern intensified in September 2023.

According to the documents, NEMA made 24 separate payments totaling ₦944,062,245.72 on September 26, 2023, to multiple companies, several of which had been incorporated only months earlier.

Two days later, on September 28, 2023, another batch of payments totaling ₦1,197,097,988.99 was processed to many of the same companies.

On September 30, 2023, a further ₦1,049,444,802.54 was paid out, bringing the total value of payments reviewed by reporters to more than ₦3.4 billion.

Public finance regulations generally require government expenditure to be supported by sufficient documentation identifying the purpose of payments, the goods or services supplied and other relevant details necessary for accountability and audit purposes.

Where payment descriptions are incomplete or absent, it becomes more difficult for the public and oversight institutions to independently determine what was delivered, where it was delivered and whether value was obtained for public funds.

The records reviewed by SecretsReporters therefore raise questions about the procurement processes, contractor selection procedures and documentation supporting some of the payments made during the period under review.

Further scrutiny by relevant oversight agencies may be necessary to establish the full circumstances surrounding the payments and to determine whether all applicable procurement and financial regulations were complied with.

Additional inquiries may also be required regarding the status and operational history of Freestone Investment Ltd, A.A Albasu Nigeria Ltd, Ecofriendly Engineering & Energy Solution Ltd and Reliable Reliance Platform Ltd.

The records reviewed show payments of ₦85,570,625.20 to Ecofriendly Engineering & Energy Solution Ltd and ₦29,875,625.20 to Reliable Reliance Platform Ltd. However, reporters were unable to immediately trace corresponding CAC records for the companies during the review process, and both entities were excluded from the principal computation pending further verification.