By Rasheeda Hamidu
The Nigerian Agricultural Insurance Corporation (NAIC) spent almost N125 million in 2024 on diesel for top executives, personal social events, Sallah bonuses and government vehicles later sold to former executives, an audit has revealed.
The findings were reported by the Foundation for Investigative Journalism (FIJ) on Monday, based on the 2024 audit observations on non-compliance and internal control weaknesses in federal Ministries, Departments and Agencies (MDAs) for the year ended December 31, 2024.
According to the audit, the N125 million comprised N17.62 million spent on diesel for the personal use of the managing director and executive directors, N5.77 million on weddings and burials, N2.4 million on Sallah bonuses for domestic staff, and N98.68 million on two government vehicles sold to former executive directors.
The auditors flagged more than 35 spending issues involving NAIC and noted that the corporation did not provide responses or defence to any of the issues raised.
The audit found that N17.62 million was paid for diesel for the personal use of the managing director and executive directors without approval from the National Salaries, Incomes and Wages Commission, and said the expenditure could not be considered a legitimate charge against public funds.
The corporation also spent N5.77 million to support 12 personal events, including weddings and burials, involving five staff and non-staff members, with auditors questioning the use of public funds for the payments.
Another N2.4 million was paid as Sallah bonuses for the domestic staff of 13 beneficiaries, but auditors said the corporation could not provide the required approval and described the recipients as “non-existent domestic staff”.
The audit also raised concerns over two Toyota Land Cruiser vehicles purchased for N98.68 million, which were sold to the same former executive directors after their tenure ended but before the vehicles completed their four-year depreciation period.
The auditors said the vehicles were sold without a competitive disposal process or independent valuation, warning that the arrangement could result in the loss or undervaluation of government assets.
Beyond the N125 million highlighted by FIJ, the audit found that NAIC paid N40.98 million in domestic staff salaries for 15 members of management and N54.66 million in children allowances without the required approval.
Auditors also found that six government vehicles with a combined value of N117.04 million were missing from NAIC’s 2024 vehicle register and could not be accounted for during physical inspection.
The corporation was further flagged over 18 contracts worth N1.086 billion that were awarded without required approvals, while N542.29 million was spent on 12 training contracts for consultants whose accreditation certificates could not be produced for verification.
Established in 1987, NAIC provides insurance protection to farmers, agribusinesses and other stakeholders against risks affecting agricultural production, making effective management of its public resources important to its role in supporting Nigeria’s agricultural sector.
NatureNews reports that the findings highlight broader concerns about financial controls, accountability and the management of public resources within agencies expected to support Nigeria’s agricultural development.
