₦4 Billion In Financial Breaches And 36 Separate Compliance Issues Rock Nigeria Agricultural Insurance Corporation

Secrets Reporters

 Internal financial documentation from the Nigerian Agricultural Insurance Corporation (NAIC) has revealed a complex web of 36 distinct compliance breaches and accounting irregularities totaling ₦4,054,027,678.84.  SecretsReporters can authoritatively report. 

The findings detail a breakdown of internal procurement safeguards, missing official assets, multi-billion naira uncollected state debts, and executive benefit inflation within the agricultural risk provider.

The transactions span the administrative tenures of former Managing Director Senator Gbenga Ashafa and sitting Managing Director/CEO Yazid Shehu Umar Danfulani, who assumed leadership of the Corporation in May 2025.

The single largest item involves ₦1.99 billion in uncollected debts owed to the Corporation by state governments, which remain unrecovered. Procurement compliance failures accounted for ₦1.09 billion in contracts awarded without mandatory market price surveys, alongside ₦774.86 million in procurement threshold violations, including deliberate contract splitting to evade tender board limits. 

The review further exposed ₦154.46 million disbursed for unauthorized intervention projects, ₦130.25 million spent on IT hardware lacking mandatory NITDA clearance, and ₦215.72 million tied to missing official vehicles alongside premature asset liquidations. Internal administrative abuses accounted for ₦70.71 million in ineligible management staff allowances, ₦23.39 million in unauthorized personal expenditures, ₦14.47 million in payments made without vouchers, and ₦25.69 million in unremitted withholding tax.

Debt Recovery & Procurement Deficits: ₦1,989,535,779.20 (State Debts): Outstanding financial liabilities owed by state government entities that have gone uncollected. ₦1,085,966,438.40 (Unsurveyed Procurements): Capital contracts executed without conducting statutory preliminary market surveys to benchmark fair costs. ₦483,598,898.40 & ₦291,265,875.00 (Threshold Violations): Direct procurement breaches, with the latter involving artificial contract splitting to bypass statutory approval levels. ₦154,464,000.00 (Unapproved Projects): Disbursements released for constituency and zonal intervention programs without regulatory authorization. ₦130,254,138.40 (Uncleared IT Purchases): Technology hardware acquired without technical clearance from the National Information Technology Development Agency (NITDA).

Asset Diversion & Benefit Inflation: ₦117,038,888.00 (Missing Vehicles): Official motor vehicles missing from physical inventory without explanation. ₦98,680,600.00 (Irregular Asset Scrapping): Official fleet vehicles prematurely scrapped and auctioned off outside statutory guidelines. ₦40,976,379.72 & ₦20,336,188.46 (Executive Allowances): Domestic staff salary allowances paid to senior management and ineligible medical allowances disbursed to top executives. ₦17,621,800.00 & ₦5,773,060.00 (Personal Expenditures): Public funds utilized for personal fuel supplies and private social events. ₦25,692,725.00 & ₦14,474,192.00 (Tax & Documentation Deficits): Under-deducted withholding tax on consultancy fees and payments issued without payment vouchers on file.

The financial breaches breach foundational public finance guidelines: Public Procurement Act 2007: Governs mandatory market surveys, due diligence, and strict prohibitions against contract splitting—breached by over ₦1.85 billion in combined contract queries. Financial Regulations 2009: Regulates official vehicle fleet management, cash advance limits, and prepayment voucher audits—violated across the missing vehicle and voucher-less payment findings. NITDA Act & Companies Income Tax Act: Mandates statutory clearance for public sector ICT projects and full deduction of withholding tax at source, breached by ₦130.25 million and ₦25.69 million respectively.