The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has spoken about how the agency intervened in 2024 to stop a contractor engaged by the Ministry of Power from executing a project using fake and substandard transmission materials.
Mr Olukoyede said this while receiving the Managing Director and Chief Executive Officer of the Nigerian Electricity Management Services Agency (NEMSA), Olusegun Adesayo, during a courtesy visit to the commission’s headquarters in Abuja on Wednesday.
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According to a statement shared with PREMIUM TIMES by EFCC spokesperson Dele Oyewale on Thursday, the anti-graft agency investigated the contractor and found that he had imported substandard transmission lines that could have posed serious risks to lives and national infrastructure.
“In 2024, we had cause to write to the Ministry of Power to blacklist a contractor after confirming that he imported fake and substandard power transmission lines for a government project,” Mr Olukoyede said.
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The EFCC chair, Mr Olukoyede, did not provide the details of the contract, including its location and cost, which agency awarded the contract and the status of possibly any ongoing investigations or if prosecution has taken place.
But he said EFCC’s intervention averted a potential disaster, including possible loss of lives and damage to public assets. He did not share further details.
Nigeria has the world’s largest energy access deficit, according to the World Bank, which estimated that 43 per cent of the population (85 million people) lacked access to grid electricity.
Among connected users, reliability is poor, with surveys by the World Bank showing over 78 per cent of consumers receive less than 12 hours of electricity daily. This reflect persistent infrastructure, financial, and supply-chain challenges across the sector.
The government’s allcoations to the power sector for electification projects and easing chronic shortage in electricity supply in Nigeria are often undercut by corruption and fraud.
Currently, two former ministers – Olu Agunloye and Saleh Mamman – who supritended over the ministry at various times are facing trial over allegations of fraud diversion.
Top officers of the Rural Electrification Agency are also standing trial before the Federal High Court in Abuja for allegedly stealing billions of naira from the Government integrated Financial Management Information System (GIFMIS), a digital platform put in place to stop theft of the agency’s funds.
Despite an installed capacity of over 13,000 MW, actual generation typically ranges around 4,000–5,500 MW due to many challenges including gas shortages, and operational inefficiencies, according to the World Bank and Nigerian Electricity Regulatory Commission.
Some Nigerian lawmakers have also been caught in scandals over the diversion of funds earmarked for electrification under the constituency project scheme.
EFCC seeks stronger collaboration in power sector
Mr Olukoyede said the commission is ready to work with NEMSA to improve electricity supply and enforce compliance with regulations in the sector.
“We believe that working together will ensure that all stakeholders comply with the rules guiding the industry. This will ultimately improve power supply,” he said, noting that the EFCC’s mandate covers economic sabotage beyond financial crimes.
He also urged the agency to pay closer attention to procurement and contract-related fraud, assuring that the EFCC has the expertise to support investigations in those areas.
NEMSA requests support on enforcement and intelligence
In his remarks, Mr Adesayo said the visit was aimed at strengthening collaboration with the EFCC to enforce safety standards and promote transparency in the electricity industry.
He said NEMSA is mandated to regulate technical standards to ensure the safety, reliability and quality of electrical materials nationwide.
Mr Adesayo sought the EFCC’s support in intelligence sharing, the investigation of substandard materials, procurement processes, and contract abuses, and public sensitisation.
“We recognise that effective regulation and anti-corruption enforcement are critical to protecting public infrastructure. We seek a coordinated effort to safeguard national assets,” he said. He added that the agency is also strengthening its internal control mechanisms.
NLC raises alarm over TCN spending
Meanwhile, the Nigeria Labour Congress (NLC) has criticised a proposed spending of nearly N20 billion on emergency refurbishment projects by the Transmission Company of Nigeria.
In a letter signed by its president, Joe Ajaero, the labour union called for an immediate halt to the procurement process pending a forensic audit.
The NLC alleged that the planned expenditure could enable contract inflation and misappropriation of public funds under the guise of emergency interventions.
It urged anti-graft agencies, including the EFCC and the Independent Corrupt Practices Commission, to investigate procurement officials and scrutinise the projects.
Corruption and power sector challenges
Mr Olukoyede had earlier linked persistent power outages in Nigeria to corruption in the sector, particularly the use of substandard materials by contractors.
Speaking during a 2024 oversight visit by lawmakers, he said contractors often cut costs by substituting approved materials with inferior alternatives, leading to frequent equipment failure and grid instability.
“If you see some of the investigations we are carrying out in the power sector, you will shed tears,” he said, citing cases where contractors supplied lower-grade materials than specified.
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He stressed that while asset recovery remains important, preventing corruption is more cost-effective, noting that the EFCC recovered about N440 billion and significant foreign currency assets within a year.
Also concerns about substandard equipment in Nigeria’s power sector are longstanding. In 2016, former Minister of Power, Babatunde Fashola, attributed the trend to profit-driven practices by some investors. He warned that the government would not tolerate excessive profiteering at the expense of quality and safety.
He emphasised the need for strict regulatory compliance, including licensing by the Nigerian Electricity Regulatory Commission and adherence to due process in power sector investments.
“No government will allow excessive profiteering,” he said as he advised businessmen to be thorough, well-informed, knowledgeable and follow the law and laid down procedures.
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