Auditor-General Questions N33.75bn Cash Transfer Payments to Unverified Beneficiaries
By Victor Idajili
The Federal Government could not provide sufficient proof that N33.75 billion in cash transfers meant for more than 3.29 million vulnerable households reached genuine beneficiaries, according to the Auditor-General for the Federation.
This is contained in the Auditor-General’s 2024 Annual Report on Non-Compliance and Internal Control Weaknesses in MDAs, which reviewed transactions at the National Cash Transfer Office in Abuja for the 2023 financial year.
The report said electronic transfers totalling N33,751,080,000 were made in 2023 to 3,295,207 households drawn from the National Social Register and enrolled on the National Beneficiary Register across 35 states.
However, auditors noted that the paid vouchers did not contain full details of the beneficiaries. The Remita statement required to reconcile those paid with persons listed on the NSR and NBR was also not presented for examination.
“The REMITA statement showing record of the beneficiaries paid as against those listed on the NSR and NBR was not presented for audit. This hindered the authentication of the payments and made it difficult to ascertain whether the beneficiaries who received the funds were genuine,” the report stated.
The Auditor-General said attempts to obtain the payment records were blocked by accounts staff at the NTCO, which affected the audit process.
The report identified possible loss of public funds and payments to ineligible or fictitious persons as risks. It recommended that the National Programme Manager account for the N33.75 billion before the Public Accounts Committees of the National Assembly and provide evidence that beneficiaries received the money. If the funds cannot be accounted for, they should be recovered and remitted to the Treasury.
The management of the National Cash Transfer Office did not respond to the query.
The report also queried N36.74 billion in payments made without prepayment audit. It stated that 215 payment vouchers relating to SS, IDA and output-based transactions in December 2023 were processed and paid without internal audit checks, contrary to extant regulations. The Internal Audit Unit only carried out post-payment checks. The audit cited risks of misapplication and diversion and recommended that the N36.74 billion be accounted for before the National Assembly.
In another instance, 101 payments totalling N4.616 billion from the NTCO’s S&S/IDA Cash Book were made but the paid vouchers were not presented for audit. The Auditor-General recommended that the amount be accounted for or recovered.
The audit also raised concerns over N350.18 million in unsubstantiated funds. Of N3.09 billion paid to states for enrolment of unbanked beneficiaries, documents for N2.74 billion were provided, leaving N350.18 million unaccounted for. The vouchers were vague and lacked supporting documents such as beneficiary lists, photographs, attendance registers and enrolment reports. The report recommended recovery of the balance if it remains unaccounted for.
A further N393.71 million returned by nine State Cash Transfer Units as unused enrolment funds was queried. NTCO said the states could not conduct enrolment due to insecurity and other factors and returned the money in 2023. But the audit said there was no evidence the funds were credited to the Consolidated Revenue Fund, and no Remita inflow statements or IRR pay slips were provided.
The report also flagged a N280.42 million advance payment, representing 30 per cent, to Payment Service Providers for a payment platform. It said no Advance Payment Guarantee was provided and there was no evidence of due process in selecting the providers, as their files lacked pre-qualification, bidding and evaluation records. The audit recommended recovery of the amount.
Other findings include store items valued at N89.51 million that were not entered in the store ledger, and N17.42 million spent on diesel and paid to staff as cash advances instead of through contract awards, despite exceeding the N200,000 procurement threshold. The auditors estimated N2.18 million in lost VAT and Withholding Tax revenue as a result.
The Auditor-General noted that management did not respond to any of the eight queries.
The cash transfers are part of the World Bank-supported National Social Safety Net Programme-Scale Up. Nigeria recently drew an additional $208.29 million from the $800 million facility, bringing total disbursements to about $744.61 million, or 93.1 per cent of the loan approved in December 2021.
The programme was originally designed to pay N5,000 monthly. It was later revised to N25,000 monthly for three months to reach 15 million households following fuel subsidy removal.
Implementation has faced delays and controversies. In December 2023 the EFCC uncovered an alleged N37.1 billion fraud in the Ministry of Humanitarian Affairs under former Minister Sadiya Umar-Farouq. Her successor, Dr Betta Edu, was suspended in January 2024 over the alleged transfer of N585 million to a private account. The EFCC said it recovered about N32.7 billion and $445,000. Halima Shehu, former National Coordinator of NSIPA, was also arrested over alleged diversion of N44 billion.
President Tinubu set up a panel headed by former Finance Minister Wale Edun to review and restructure social investment programmes. The government has also partnered with the CBN and NIMC to require BVN and NIN for beneficiaries.
In March 2025, the Minister of Humanitarian Affairs and Poverty Reduction, Dr Bernard Doro, said about 9.2 million Nigerians had benefited from the Household Prosperity and Empowerment Cash Transfer Programme, with roughly N688 billion disbursed in two years.
The World Bank, however, said in 2025 that only 37 per cent of targeted households were reached. Former Vice President Atiku Abubakar has also asked the government to publish detailed records of payments, including verified beneficiaries, tranches, state distribution, failed transactions and reversals.
