Underfunded capital projects in budgets fuelling corruption, waste – BPP DG

Adebowale  Adedokun, director general of the Bureau of Public Procurement (BPP),  has raised concerns over what he termed the persistent inefficiencies and violations in Nigeria’s budgeting and project implementation systems, warning that underfunded and uncoordinated capital projects have become conduits for corruption.

Speaking at the National Conference on Public Accounts and Fiscal Governance, organised by the Public Accounts Committees of the Senate and the House of Representatives, Adedokun called for a comprehensive overhaul of Nigeria’s project funding framework and the enforcement of accountability through judicial sanctions.

He stressed that no capital project should be allowed to commence without full financial backing, adding that the prevailing practice of allocating meagre sums to multi-billion-naira initiatives encourages cost variations and corruption.

“There are projects worth ₦10 billion or ₦5 billion, but what I see is that only ₦300 million is allocated. Already, it tells me that I’ll be asked for appropriation again, or to incure variation. That is wasteful and unacceptable,” he said.

Read also: No longer business as usual in public procurement – Adedokun, DG, BPP

Adedokun lamented that some federal projects have remained “ongoing” since as far back as the year 2000, yet continue to attract fresh budgetary allocations each year without any verifiable evidence of progress.

He criticised the widespread disregard for international public finance standards, particularly the rule that capital projects must be fully funded before execution begins. “In global standards, a project must already have funding from start to finish before execution. But here, people just award contracts without funds, and that’s a clear violation of the procurement act,” he lamented.

The BPP chief disclosed that in recent months, the Bureau uncovered several contracts that were awarded and even executed without financial provision—a situation he described as unlawful and detrimental to the integrity of the 2024 budget cycle.

He called on fiscal oversight bodies—including the Economic and Financial Crimes Commission (EFCC), the Fiscal Responsibility Commission, and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to commence monitoring from the start of the budget cycle rather than midway through or after funds have been disbursed.

“If we are serious about stopping waste and corruption, we must start monitoring at the beginning of the budget cycle. Not after projects have failed or funds have been misused,” he said.

Read also: BPP saves Nigeria N1.9trn from contract fraud

He urged lawmakers and government institutions to embed fiscal discipline and prudence into all budgeting and procurement processes, while advocating for stronger alignment with international standards.

Adedokun proposed that ministries, departments and agencies (MDAs) should be required to present empirical evidence of performance before being granted new budgetary allocations.

He urged an end to the practice of inserting underfunded projects into the budget, an approach which, he argued, leads to a proliferation of never-ending projects and undermines transparency, accountability and public service delivery.

Adedokun also criticised the failure of the judiciary to convict public officials found guilty of procurement infractions, despite what he described as “overwhelming” evidence submitted by regulatory agencies.

“In the last seven months, the Bureau has recorded close to 500 infractions. Many of these require prosecution and judicial pronouncements, but when does the judiciary give any conviction?” he queried.

He warned that the lack of consequences emboldens repeat offenders and weakens the effectiveness of Nigeria’s regulatory institutions.  “We’ve never sanctioned people for bad behavior. That has to change,” he said.