A major corruption scandal has erupted at Nigeria’s Federal Ministry of Finance, as damning evidence links Finance Minister Wale Edun and Permanent Secretary Lydia Shehu Jafiya to the award of over ₦13 billion in inflated and irregular contracts between February and June 2024.
Investigations reveal that several contracts were fraudulently awarded to shell companies, non-tax-compliant entities, and firms tied to political cronies—many of which failed to meet the basic requirements of Nigeria’s Public Procurement Act. Payments were made for vague or unverifiable projects, with funds transferred in lump sums in record time.
Highlights of the Alleged Fraud:
Nigerian Gas & Transportation Solutions Ltd – A non-existent company received ₦846 million on June 26, 2024, as 50% payment for an “update on payment status” of PCNGI contractors. Previously, on February 29, it received ₦470 million for supplying 3,000 CNG conversion kits and cylinders—despite no track record or evidence of delivery.
Biyaks Business Options Ltd – Received a total of ₦2.82 billion, despite failing tax compliance checks. Payments include ₦846 million as part of a contract, ₦564 million for 5,000 CNG kits, and ₦783 million on February 16. A new director, Bitrus John, who allegedly serves as a front, was added in February 2022 and now holds 40% of the firm.
Xarraca Synergy Ltd – Incorporated only in May 2021, the company was paid ₦1.53 billion and an additional ₦917 million on May 6, 2024, despite lacking tax clearance and procurement credentials. Two directors, believed to be fronts, were added in December 2022.
Silveredge Projects Ltd – Received ₦1.09 billion as part of a contract worth ₦3.66 billion, as well as ₦695 million for supplying 2,000 CNG-powered tricycles. The current director, Ademola Idris Idowu, assumed control in August 2022, raising questions despite the company’s 20-year existence.
SBO Energy Ltd – Just six months after its registration in October 2023, the firm was paid ₦533 million for 3,000 CNG kits. The promoter, Olagbaiye Babafemi, is a media consultant with no known experience in the energy sector.
The revelations have triggered widespread public condemnation, with calls for an immediate probe by the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC). Civil society organizations and transparency watchdogs have described the scale of the fraud as “a betrayal of public trust.”
“This is not just financial misconduct—it’s economic sabotage,” said an Abuja-based anti-corruption advocate. “Public funds meant to support Nigeria’s transition to cleaner energy are being siphoned off by elites with zero accountability.”
As of press time, neither Minister Edun nor Permanent Secretary Jafiya has publicly addressed the allegations. The Ministry of Finance has also not issued an official statement, further fueling suspicion and criticism.
The scandal raises fresh concerns about transparency in the Tinubu administration’s handling of multi-billion-naira government programs, particularly those tied to the Presidential Compressed Natural Gas Initiative (PCNGI). Despite earlier reports that Nigeria recovered over ₦83 billion under the whistleblower policy, critics argue that such efforts mean little if new channels of corruption remain open at the highest levels of government.
Pressure is mounting on the presidency to take decisive action. Observers say the administration’s response to this scandal will serve as a litmus test for its anti-corruption stance and broader governance credibility.