PRESIDENT BUHARI RECEIVES INTERIM REPORT OF
INVESTIGATIVE COMMITTEE ON ARMS PROCUREMENT, ORDERS
ARREST OF INDICTED PERSONS
On the authority of Mr President, a 13 man committee was set up
by the Office of the National Security Adviser to audit the
procurement of arms and equipment in the Armed Forces and
Defence sector from 2007 to date.
While the committee which was inaugurated on 31 August 2015 is
yet to complete its work, its interim report has unearthed several
illicit and fraudulent financial transactions.
As part of the findings, the committee has analyzed interventions
from some organizations that provided funds to the Office of the
National Security Adviser, Defence Headquarters, Army
Headquarters Naval Headquarters and Nigerian Air Force
Headquarters, both in local and foreign currencies.
So far the total extra budgetary interventions articulated by the
committee is Six Hundred and Forty Three Billion, Eight Hundred
and Seventeen Million, Nine Hundred and Fifty Thousand, Eight
Hundred and Eighty Five Hundred Naira and Eighteen Kobo
The foreign currency component is to the tune of Two Billion, One
Hundred and Ninety Three Million, Eight Hundred and Fifteen
Thousand US Dollars and Eighty Three Cents ($2,193,815,000 .83)
These amounts exclude grants from the State Governments and
funds collected by the DSS and Police. It was observed that in
spite of this huge financial intervention, very little was expended to
support defense procurement.
The committee also observed that of 513 contracts awarded at $
8,356,525,184. 32; N2,189,265,724, 404.55 and €54,000.00; Fifty
Three (53) were failed contracts amounting to $2,378,939,066. 27
and N13,729,342,329 .87 respectively.
Interestingly, it was noted that the amount of foreign currency
spent on failed contracts was more than double the $1bn loan that
the National Assembly approved for borrowing to fight the
insurgency in the North East.
The committee also discovered that payments to the tune of
Three Billion, Eight Hundred and Fifty Million Naira
(N3,850,000,000 .00) were made to a single company by the
former NSA without documented evidence of contractual
agreements or fulfilment of tax obligations to the FGN.
Further findings revealed that between March 2012 and March
2015, the erstwhile NSA, Lt Col MS Dasuki (rtd) awarded fictitious
and phantom contracts to the tune of N2,219,188,609. 50, $
1,671,742,613. 58 and €9,905,477.00. The contracts which were
said to be for the purchase of 4 Alpha Jets, 12 helicopters, bombs
and ammunition were not executed and the equipment were
never supplied to the Nigerian Air Force, neither are they in its
Even more disturbing was the discovery that out of these figures,
2 companies, were awarded contracts to the tune of
N350,000,000.00 , $1,661,670,469. 71 and €9,905,477.00
alone. This was without prejudice to the consistent non-
performance of the companies in the previous contracts
Additionally, it was discovered that the former NSA directed the
Central Bank of Nigeria to transfer the sum of $132,050,486.97
and €9,905,473.55 to the accounts of Societe D’equipmente
Internationaux in West Africa, United Kingdom and United States
of America for un-ascertained purposes, without any contract
documents to explain the transactions.
The findings made so far are extremely worrying considering that
the interventions were granted within the same period that our
troops fighting the insurgency in the North East were in desperate
need of platforms, military equipment and ammunition. Had the
funds siphoned to these non performing companies been
properly used for the purpose they were meant for, thousands of
needless Nigerian deaths would have been avoided.
Furthermore, the ridicule Nigeria has faced in the international
community would have been avoided. It is worrisome and
disappointing that those entrusted with the security of this great
nation were busy using proxies to siphon the national treasury,
while innocent lives were wasted daily.
In light of these findings, President Muhammadu Buhari has
directed that the relevant organizations arrest and bring to book,
all individuals who have been found complicit in these illegal and
Special Adviser to the President
(Media & Publicity)
November 17, 2015