By Secrets Reporters
A fresh review of government spending has uncovered troubling irregularities at the Federal Ministry of Finance, Budget and National Planning, where ₦22,525,000.00 was paid in cash to ministry staff for the purchase of fuel for official vehicles a practice that flouts both fuel-procurement rules and the federal government’s e-payment policy.
According to findings from the review, 14 payment vouchers totalling the amount were issued to ministry staff, who were then expected to hand the cash to other staff members for fuel purchases. The arrangement bypassed the required credit-account system with fuel suppliers, raising serious concerns about how public money is being handled.
The review cited the Financial Regulations of 2009, specifically paragraphs 2005 and 713, which were breached by the cash-based approach.
Treasury Circular No. TRY/ A2&B2/ 2009/ OAGF/ CAD026/V OF 24th March 2009 states that, “All procurement of stores and services exceeding N200,000.00 shall be made only through the award of contract”.
Similarly, Treasury Circular Ref. No. TRY/A2&A3/2013 OAGF/CAD/026/V.1/188 OF 9th April, 2013 emphasized that, “cash advance in excess of N200,000.00 should not be granted to any officer for procurement of goods and services but the procurement should be given out as a contract”.
Financial Regulation 603 states, “All vouchers shall contain full particulars of each service such as dates, numbers, quantities, distances and rates….and will invariably be supported by relevant documents such as LPOs, invoices, special letters of authority, time sheets, rates etc.”
Officials warn that the practice exposes government funds to significant risks, including outright loss of public money, loss of tax revenue, and the potential diversion of funds meant for official purposes.
When confronted with the findings, management defended the payments, describing them as “standard vehicle-running allowances for Departmental Directors and Heads of Unit.” Management insisted the payments were approved by the Permanent Secretary within the allowed threshold, with the Internal Audit Unit ensuring retirement at the end of each period.
However, the explanation does not address why the money was moved in cash rather than through the mandated credit-account arrangement with fuel suppliers, leaving questions unanswered about compliance with the federal e-payment policy.
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