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The Auditor-General for the Federation has raised concerns over N33.75 billion disbursed under the Federal Government's cash transfer programme, saying there is no sufficient evidence that more than 3.29 million listed beneficiaries actually received the funds.
The observation is contained in the 2024 Annual Report on Non-Compliance/Internal Control Weaknesses in Ministries, Departments and Agencies, which reviewed the 2023 financial records of the National Cash Transfer Office (NCTO).
According to the report, N33.751 billion was electronically transferred to 3,295,207 households across 35 states through the National Social Register and National Beneficiary Register.
However, auditors said payment vouchers lacked complete beneficiary details, while the Remita payment records needed to verify the transfers were not made available for examination.
The report stated that the absence of the records made it impossible to confirm whether the payments reached genuine beneficiaries or were made to eligible recipients.
It also alleged that officials of the National Cash Transfer Office obstructed auditors' efforts to access the Remita statements, frustrating the audit process.
The Auditor-General warned that the lapses exposed public funds to possible diversion and payments to fictitious or ineligible beneficiaries.
The report recommended that the National Programme Manager explain the N33.75 billion expenditure before the Public Accounts Committees of the National Assembly and provide evidence that the beneficiaries received the money. It added that the funds should be recovered and remitted to the Treasury if they cannot be properly accounted for.
Beyond the cash transfers, the audit also flagged N36.74 billion in payments processed without mandatory pre-payment audit by the Internal Audit Unit, contrary to financial regulations.
Another N4.62 billion in payments was questioned after the NCTO failed to produce payment vouchers for audit verification.
The report further identified N350.18 million in enrolment funds disbursed to states without adequate supporting documents, while another N393.71 million reportedly returned by nine states could not be confirmed as having been paid into the Consolidated Revenue Fund.
The Auditor-General also queried a N280.42 million mobilisation payment to Payment Service Providers, saying it was made without the required Advance Payment Guarantee and lacked evidence of due procurement procedures.
In addition, store items valued at N89.51 million were reportedly not recorded in the office's store ledger, while N17.42 million spent on diesel was paid to staff as cash advances instead of following procurement guidelines.
The report noted that the National Cash Transfer Office failed to respond to all eight audit queries raised during the review.
The audit comes amid continued scrutiny of Nigeria's social intervention programme, which is partly funded through an $800 million World Bank facility designed to support poor and vulnerable households.
The cash transfer programme has faced repeated allegations of financial mismanagement in recent years, prompting reforms by the Federal Government, including stricter beneficiary verification through the Bank Verification Number (BVN) and National Identification Number (NIN) systems to improve transparency and accountability.
