Crime
Enugu Company Fingered As W’Bank detects $32m Water Project Fraud
The World Bank has identified $32m in unaccounted funds in a Nigerian water sector project, raising concerns over likely embezzlement and mismanagement.
According to the newly released FY2024 Sanctions System Annual Report, the Bank’s Integrity Vice Presidency (referred to as ‘INT’ in the report) flagged the discrepancies after a forensic review.
The funds, intended to bolster water infrastructure, were not adequately accounted for, prompting an intervention to safeguard the project’s integrity.
In a decisive move to mitigate risks, the World Bank engaged with the project team, including Nigeria’s Task Team Leader, Operations Manager, and Financial Management Specialist.
The bank recommended steps to recover the funds and prevent further losses. Consequently, the Central Bank of Nigeria has been asked to reimburse $22m, while $6m remains in the project account to cover anticipated operational expenses.
The bank has also limited the project’s financial operations to direct payments to curb further irregularities.
A copy of the report obtained by Sunday PUNCH read, “INT followed up on risks identified regarding a project in Nigeria’s water sector and flagged to operations the risk, which was associated with $32m of unaccounted funds.
“INT met with the Task Team Leader, Operations Manager, Programme Leader, and Financial Management Specialist to identify steps to reduce the risk of embezzlement. As a result, the project team asked the Central Bank (of Nigeria) to reimburse the full amount ($22m) and limited the remainder of the project to direct payments.
“The local account remained with about $6m in undisbursed balance, a little more than the anticipated PIU expenses for the remainder of the project.”
Further investigations showed that the World Bank has imposed a 1.5-year debarment with conditional release on a Nigerian engineering firm and its managing director for fraudulent practices in the Nigeria Erosion and Watershed Management Project.
This decision follows an investigation by the bank’s Integrity Vice Presidency, which uncovered instances of misrepresentation during the bidding and execution phases of the project.
A document from the World Bank obtained by Sunday PUNCH provided more information on the project, noting, “This case arises in the context of the Nigeria Erosion and Watershed Management Project (the “Project”) in the Federal Republic of Nigeria.
“The project sought to reduce vulnerability to soil erosion in targeted sub-watersheds in Nigeria. On April 16, 2013, Nigeria entered into a financing agreement with IDA for an amount equivalent to Special Drawing Rights (‘SDR’) 321.4m (approximately $500m at the time of signature) to support the project.
“Simultaneously, the bank and Nigeria entered into two grant agreements under the Global Environment Facility and the GEF Special Climate Change Fund, for $3.96m and $4.63m, respectively, to support the project.
“On February 12, 2019, the bank provided additional financing to Nigeria in the amount of SDR 208.7m (equivalent to $300m), plus a Scale-up Facility Additional Credit in the amount of $100m. The project became effective on September 16, 2013, and closed on June 30, 2022.”
The NEWMAP project, financed by the International Development Association and supported by the Global Environment Facility, was designed to reduce soil erosion in targeted Nigerian sub-watersheds.
The $900m project spanned multiple states, including Abia, where the firm under scrutiny was contracted.
The engineering firm, part of a joint venture, was awarded a $1.22m contract in 2015 to provide design and supervision services for erosion control.
The investigation revealed that during the selection process, the firm misrepresented the availability of key staff and the role of one of its JV partners.
Also, during project implementation, the firm replaced key personnel without notifying the project management unit, violating contract terms.
The investigation uncovered that two key staff members listed in the firm’s proposal were unavailable during the project.
The firm’s managing director admitted during the hearing that the staff’s availability was never confirmed before submission.
This act constituted a fraudulent misrepresentation, according to the World Bank’s Consultant Guidelines.
The firm also falsely claimed that a JV partner actively participated in the project.
While the partner was listed in the proposal, it neither contributed to the work nor received payment for its involvement.
The firm’s justification that the partner was included for its political connections was deemed unsubstantiated by the World Bank.
The firm and its managing director are barred from participating in any World Bank-financed projects for a minimum of 1.5 years.
This sanction extends across the World Bank Group and may be enforced by other multilateral development banks under a cross-debarment agreement.
The document read, “The Respondent Firm, together with any entity that is an Affiliate directly or indirectly controlled by the Respondent Firm, shall be ineligible to (i) be awarded or otherwise benefit from a Bank-financed contract, financially or in any other manner; (ii) be a nominated sub-contractor, consultant, manufacturer or supplier, or service provider of an otherwise eligible firm being awarded a Bank-financed contract; and (iii) receive the proceeds of any loan made by the Bank or otherwise participate further in the preparation or implementation of any Bank-Financed Projects.”
It added, “the Respondent Managing Director, together with any entity that is an Affiliate that he directly or indirectly controls, shall be ineligible to (i) be awarded or otherwise benefit from a bank-financed contract, financially or in any other manner; (ii) be a nominated sub-contractor, consultant, manufacturer or supplier, or service provider of an otherwise eligible firm being awarded a Bank-financed contract; and (iii) receive the proceeds of any loan made by the Bank or otherwise participate further in the preparation or implementation of any Bank-Financed Projects.”
Reinstatement after the debarment period is contingent on the firm implementing compliance measures, including the establishment of an integrity compliance program.
Further checks by Sunday PUNCH showed that a firm, Diyokes Consultants Limited, based in Enugu State, Nigeria was declared ineligible by the World Bank for a period of 1.5 years (from March 11, 2024, to September 10, 2025) for fraudulent practices.
The individual associated with the same firm, Innocent Diyoke, shared the same ineligibility period and grounds for sanction.
Both the firm and individual were linked to fraudulent activities uncovered in connection with the World Bank-financed project.
It was earlier reported that the Federal Government, under the leadership of President Bola Tinubu, secured loans worth $6.45bn from the World Bank in just 16 months.
The amount increased to the new figure following the recent approval of three new loans totalling $1.57bn from the World Bank for various projects in Nigeria and is expected to increase further in the coming months.
This was as the international lender approved no fewer than 36 loan requests to the Federal Government, amounting to a substantial total of $24.09bn within five years.
These approvals, aimed at financing various development projects nationwide, arrive alongside increasing concerns about the country’s escalating debt profile, prompting questions about the sustainability of these financial commitments and their potential long-term effects on the economy.
Some of the projects under Tinubu include loans for power ($750m), women empowerment ($500m), girl’s education ($700m), renewable energy ($750m), economic stabilization reforms ($1.5bn) and resource mobilization reforms ($750m).
For many Nigerians, long years of infrastructure decay and increased unemployment have triggered an increased feeling of bitterness whenever they hear the government’s intention to borrow.
Although some of them realistically agree that resources are thin, considering an outsized population; however, they believe the past borrowings have not been justified.
The Bauchi State Police Command has commenced an investigation into the death of a 20-year-old man, Abdullahi Adamu, following allegations that he was assaulted while in police custody in Misau Local Government Area.
The Command’s spokesperson, SP Nafiu Habib, disclosed this in a statement issued on Monday, saying the police became aware of reports circulating on social media alleging that officers attached to a police outpost under the Misau Division assaulted the Sebore Village resident during interrogation.
According to the statement, Adamu was initially taken to the Federal Medical Centre (FMC), Misau, for treatment before being referred to the Abubakar Tafawa Balewa University Teaching Hospital (ATBUTH), Bauchi, where he was confirmed dead on Sunday, July 12, 2026.
Reacting to the incident, the Commissioner of Police, Sani-Omolori Aliyu, directed an immediate and thorough investigation into the circumstances surrounding the death, stressing that the Command remains committed to professionalism, respect for human rights, and due process.
He assured that any officer found culpable would face appropriate disciplinary and legal action in accordance with the law.
“The Command is committed to ensuring that justice is served, and appropriate disciplinary and legal actions will be taken against any personnel found culpable,” the statement read.
The police also expressed condolences to the deceased’s family and prayed for the peaceful repose of his soul.
The Command appealed to members of the public with relevant information to assist the ongoing investigation, noting that it has not confirmed the allegations against its personnel and that investigations are ongoing to establish the facts surrounding the incident.
Speaking during an interview on Channels Television, Adeyemi insisted that the funds were obtained through loans, adding that he has yet to repay the money.
“I borrowed the ₦400 million to pay for the appointment, and I am still indebted to those who gave me the money,” he said.
Adeyemi also dismissed allegations that he falsely presented himself as a United Nations ambassador, describing the claims as a calculated smear campaign aimed at discrediting him.
The controversy stems from earlier allegations in which Adeyemi accused Gbajabiamila of receiving ₦400 million through a proxy to facilitate his appointment and subsequently demanding an additional ₦200 million before the agency could become fully operational.
The Presidency has rejected the allegations, maintaining that Adeyemi heads a non-existent agency.
However, reports indicate that the Presidential Foreign Intervention Promotion Council received allocations in the federal budget and operated from an office within the Federal Secretariat in Abuja.
Amid growing public attention, President Bola Tinubu last week directed the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate the bribery and forgery allegations involving the PFIPC and all individuals named in the claims.
The allegations against Gbajabiamila remain under investigation, and no official findings have been released by the anti-corruption agency.Politics
Both the Presidency and the Chief of Staff have continued to deny any wrongdoing.
Suspected gunmen have abducted several mourners escorting the remains of a Federal Road Safety Corps (FRSC) officer to Benue State for burial after ambushing their convoy along the Ososo–Ajaokuta axis of Kogi State.
The victims were travelling with the body of Deputy Corps Commander Augustine O. Ikwue, popularly known as “Etume Zero,” when the attackers struck, forcing the mourners and the corpse into the bush.
According to citizen journalist and activist Meddy Olotu, the kidnappers later abandoned the officer’s body, which was recovered around Ejule in Kogi State, while the abducted mourners remain in captivity.
Olotu said the kidnappers are demanding a ₦50 million ransom for the victims’ release.
Describing the incident as heartbreaking, he lamented the worsening security situation in the country, saying, “What kind of country are we living in? Even the dead cannot rest in peace.”
He called on security agencies to intensify efforts to rescue the abducted mourners and ensure those responsible are brought to justice.
The late Deputy Corps Commander Augustine O. Ikwue was scheduled to be buried on Friday in Ai-Ode, Upu Community, Otukpo Local Government Area of Benue State, before the funeral procession was attacked.
Mr Gbajabiamila has been implicated in corruption scandals across borders, including in the U.S., where he was disbarred by the State Bar of Georgia.
President Bola Tinubu’s chief of staff, Femi Gbajamila, illegally cornered tens of billions of naira in oil and gas royalty from Nigeria’s thriving oil regulatory commission after citing a fake law for the president’s approval, documents seen by Peoples Gazette showed.
Weeks after Mr Tinubu took the oath of office in 2023, his chief of staff began canvassing for money, knocking on the doors of highly lucrative agencies like the Nigeria Revenue Service (formerly Federal Inland Revenue Service), Nigerian Maritime Administration and Safety Agency (the agency in charge of the nation’s maritime operations) and Nigeria Customs Service, sources acquainted with the matter told The Gazette.
The Nigeria Upstream Petroleum Regulatory Commission was not left out of the financial push as Mr Gbajabiamila drafted a memo requesting that four per cent of the cost of collection (annual revenue generated from the NUPRC) be split into two parts: 2.5 per cent for its operations and routine capital expenditure, and 1.5 per cent for capital expenditure.
The language ringfencing the 1.5 per cent, equal to N54 billion, was vague, as Mr Gbajabiamila said it was for “upgrading of crude oil and gas metering and transparency systems”. What he meant by transparency systems for such a humongous amount was not immediately clear.
“Mr President has directed that the Budget Office and the Accountant General of the Federation implement the approval in paragraph 2.a. above and ring fence the 1.5 per cent which may only be utilised for upgrading crude oil and gas metering and transparency systems upon obtaining relevant approvals,” Mr Gbajabiamila stated in a memo dated July 4, 2023.
Mr Gbajabiamila justified his request by citing a section of the Petroleum Industry Act 2023 to support his directive.
“The authority to collect these fees is vested in statute—Section 24(2)(c) of the Petroleum Industry Act (PIA) (2023). However, the specific percentage collectable is subject to presidential approval,” Mr Gbajabiamila said in the July 2023 memo.
Checks by The Gazette revealed the section contains language that does not in any way correlate with the authorisation to claim tens of billions of naira from the nation’s coffers.
“The source of the commission Fund shall be as follows–( c) cost of collection by the commission,” stated PIA 2023 Section 24 (2c) that Mr Gbajabiamila cited in a letter to the Ministry of Finance and Office of the Accountant General of the Federation to lay claim to N54 billion.
When asked for comments, the presidency defended Mr Gbajabiamila, saying he only carried out the president’s instructions, which he claimed were within the ambit of the law.
The presidency avoided commenting on the falseness of the cited law, instead insisting that the N54 billion illegally received was with the president’s say-so and that there was no “smoking gun” on the matter.
“Gbajabiamila did not commandeer any money,” Bayo Onanuga told The Gazette on Monday. “The presidential order given to the NUPRC is within the right of the Mr President as president and C-in-C.”
Further checks by The Gazette showed that even the president lacked such powers to direct NUPRC’s revenue accrual and capital expenditure appropriation.
That responsibility was assigned to the National Assembly under Section 24(1) of the PIA 2023, stating, “The commission shall maintain a fund into which money accruing to the commission shall be paid, and all expenditures of the commission shall be subject to appropriation by the National Assembly.”
The president, according to the cited law, has no business with directing how the cost of collection is shared, let alone laying claim to its 1.5 per cent.
The cost of collection, which was N98 billion in 2022, increased significantly to N145 billion following Mr Tinubu’s unification of the official and black market exchange rates.
Whether Mr Tinubu’s action constitutes an overreach of his constitutional powers remains to be seen and can only be determined by a competent court.
Mr Gbajabiamila has been implicated in corruption scandals across borders, including in the U.S., where he was disbarred by the State Bar of Georgia after allegedly stealing money from a client.
For months, Mr Gbajabiamila ignored summonses from the State Bar to answer questions regarding the theft. He subsequently stopped paying his membership fee after his client reported him to the Bar.
His actions led to a five-year suspension from the Bar in 2015 and ultimately led to outright termination in 2020 after the Bar determined it could no longer condone Mr Gbajamila’s ethical lapses.
In 2022, Mr Gbajabiamila was accused of accepting $2 million in cash bribes (as the speaker of the House of Representatives) to secure passage of the new Petroleum Industry Bill, despite protests from host communities.
In his latest financial scandal, the president’s chief of staff is battling fraud allegations and fighting to survive a N400 million bribery scandal that has engulfed his political career.
Adeniyi Adeyemi, director-general of a controversial Presidential Foreign Intervention Promotion Council (PFIPC), accused Mr Gbajabiamila of collecting N400 million through a proxy and demanding an additional N200 million to secure his appointment as director.
The allegation arose after Mr Gbajabiamila released a statement on June 11 denying that the PFIPC (which appeared on pages 50 and 51 of the appropriation budget) existed and that the president was unaware of Mr Adeyemi’s appointment.
Mr Adeyemi said Mr Gbajabiamila was stung by his refusal to give him 48 per cent commission of PFIPC ‘s N27.7 billion grant and hence, sought to discredit the council and humiliate his person.
“The major rationale behind the disagreement between myself and the chief of staff is because he allegedly requested 48 per cent of the take-off grant (N27,395,510,136) from the same agency, which he denies, to which I rejected after he collected a total sum of 400 million by proxy, with a remaining balance of 200 million to secure the said appointment,” Mr Adeyemi said in a statement last month.
Mr Adeyemi said it was impossible for an agency that did not officially exist to be issued such a grant at the president and chief of staff’s directive.
He said, “If the agency does not exist, yet found its way into the Nigerian national budget, what that means is that the entire 2026 appropriation budget is a fraud and should be discarded.”
The president has ordered that the allegations be thoroughly investigated and concluded within 30 days. He said persons found culpable in the corruption would be prosecuted.
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By Okey Maduforo Awka
An Awka Magistrate Court has remanded a blogger , Mr Ejike Ofoegbu following an Experte Order brought by the Police for his remanded.
Recall that Ejike Ofoegbu was arrested by the Police on the account of defermation and invasion of privacy through his Media platform Igbo News Magazine.
Contained in the said platform was a report on the disowning of Soludo’s son Ozo Nna and the other report that Ozo Nna had accused his father of maltreatment on his mother.
Shortly after Ejike Ofoegbu was arrested, he went on air to tender an apology to Governor Charles Soludo and the rest of the family members stating that the stories were false and unfounded adding that no such disagreements took place within the Soludo family.
Delivering his ruling the presiding Magistrate Ozekwele in Suit No M/ W 3136/ 2026 stated that the Court lacked jurisdiction to entertain the matter adding that the issue under contention is wheather the accused should be granted bail or remanded .
Ozekwele further stated that the matter should be referred to the State Attorney General for his input on the case before the matter would be entertained at the High Court.
Earlier counsel to the accused (Ofoegbu) S.A Machie in response to the Experte Order prayed the Court to consider the application for bail which the Court did not grant .
The matter was adjourned to the 27th day of July waiting for the submissions of the state Attorney General and ordered for the remand of Ejike Ofoegbu.
Also in a statement the Police Public Relations Officer SP Tochukwu Ikenga said that the arraignment of Ejike Ofoegbu followed the Command’s receipt of the suspect from the Department of State Services Awka, and the conclusion of Police investigations into a petition alleging the publication of false information capable of causing reputational harm and inciting public disaffection.
Ikenga noted that the Command will refrain from making further comments, as this may prejudice the ongoing Court proceedings.
“Furthermore, the Command advises members of the public, media practitioners, and publishers to exercise due diligence in verifying information before publication and to adhere to the ethics of responsible journalism and the provisions of extant laws governing the dissemination of information” he said.
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