Secret Reporters
The Nigerian Armed Forces Resettlement Centre (NAFRC), Oshodi, Lagos, redirected ₦165,289,445.29 from its 2020 overhead allocation to capital projects without approval from the National Assembly or the Minister of Finance, raising concerns over how the Centre managed funds approved for its operations.
Similarly, this amount represented a substantial portion of the Centre’s total overhead appropriation of ₦463,215,322.50 for the year. Rather than using the money strictly for the purpose for which the overhead allocation was approved, the Centre transferred more than ₦165 million to capital projects without the required authorisation for the change in spending.
Moreover, the issue was identified under Section 80(4) of the Nigerian Constitution and Financial Regulations 2009, paragraphs 417, 415 and 313. These provisions were cited in relation to the use of public funds and the procedures governing changes to approved budget allocations.
In explaining why the funds were redirected, management pointed to the welfare and security needs of retiring military personnel at the Centre. According to its response, NAFRC trains and cares for retiring and elderly members of the Armed Forces, a group it described as sensitive to harsh living conditions. Management said it undertook repairs and renovations to their accommodation whenever necessary. The Centre further explained that it relied on overhead funds for these projects because the money was released more regularly than capital funds. It argued that carrying out the repairs was in the interest of the trainees and the nation, adding that the approach helped avoid potential security breaches.
However, while management presented the expenditure as necessary for the welfare of the personnel under its care, the issue raised was that the funds had been moved from overhead to capital projects without approval from the relevant authorities. The explanation did not change the fact that the required authorisation for the virement had not been obtained. Management acknowledged the concern and stated that the practice would be curtailed going forward. Nevertheless, the response did not indicate that the Centre had obtained retrospective approval for the transfers or provided evidence that the money had been recovered. The findings identified misappropriation and diversion of public funds as risks associated with the unauthorised transfer. The amount involved was ₦165,289,445.29 out of the Centre’s total overhead appropriation of ₦463,215,322.50 for 2020.
NAFRC are expected to account for and recover the full ₦165,289,445.29 and remit it to the Treasury. The document further stated that sanctions under Financial Regulations 2009, paragraph 3106, could apply if the matter was not satisfactorily addressed.
