SMEDAN disbursed over ₦2.47 billion in questionable transactions Q1 2020; topping it off by engaging 33 unverified contractors, contravening open contracting guidelines and financial regulations.
Data from the Open Treasury Portal revealed how SMEDAN, an agency of government, made suspicious payments worth ₦2.55 billion to more than 100 contractors in the first quarter of 2020.
Worse, though, the Small and Medium Enterprises Development Agency of Nigeria engaged 33 unverified contractors, contravening financial regulations.
Again, the non-descriptive payments further violated Open Treasury guidelines.
The constant recurrence of fictitious transactions among MDAs in Nigeria amid guidelines raise questions on the weak sanctioning mechanisms in place.
Dr Dikko Umaru Radda, the Director-General of Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) signed cheques worth over ₦2.55 billion in the first quarter of 2020.
What is more? SMEDAN made these payments while violating open contracting protocols. That’s right, all the payments were without descriptions, a move experts have since condemned for being dubious. c
SMEDAN is the federal agency responsible for monitoring and coordinating the development of Micro Small and Medium Enterprises, MSMEs.
Dataphyte also observed a string of double payments to the same companies within the same month.
In all, these occurrences not only violate financial regulations and OTP guidelines but question the federal government’s sanction mechanism. After all, this is neither the first nor fifth occurrence of ‘invisible payments’ Dataphyte has noted. Or instances when a federal agency used unqualified contractors.
SMEDAN’s Payments Without Description (2020)
Date Beneficiary Name Amount (₦)
31/01/2020 MA NUMBU GLOBAL INVESTMENT LTD 40,307,142.86
18/03/2020 G-BOX INVESTMENT NIG LTD 6,092,900.57
18/03/2020 SANC-ZANG INTEGRATED LTD 15,476,590.55
18/03/2020 RASWAS NIGERIA LIMITED 12,753,951.21
18/03/2020 ZOMRITES 24/7 BUSS SOLUTION LTD 20,317,878.00
18/03/2020 SACRUX GLOBAL INVESTMENTS LTD 14,141,999.88
18/03/2020 MURAD ENGINEERING NIG LTD 19,183,392.61
18/03/2020 TG & TG BRIGHT NIG LTD 38,286,796.63
18/03/2020 ZOMRITES 24/7 BUSS SOLUTION LTD 11,259,761.90
18/03/2020 SHELTER MADE INTEGRATED NIG LTD 17,017,877.25
18/03/2020 LANRIT NIG LTD 42,545,245.66
18/03/2020 HANTSI GLOBAL RESOURCES LTD 17,335,961.00
18/03/2020 AGR INTEGRATED SERVICES LTD 25,514,259.64
18/03/2020 FAIRFIELD ENGINEERING LIMITED 10,751,400.00
18/03/2020 MAIDENHEAD GLOBAL VENTURES LIMITED 24,806,157.75
18/03/2020 HZ – GANI GLOBAL LTD 29,766,369.00
18/03/2020 MAIJAKKA AND COMPANY NIGERIA ENTERPRISES LTD 80,795,238.10
18/03/2020 SANC-ZANG INTEGRATED LTD 5,990,652.43
18/03/2020 IMDUPA GLOBAL VENTURES LTD 40,827,380.96
18/03/2020 AMMAR ESTATE MANAGEMENT LTD 22,615,557.50
18/03/2020 HUX SYNERGY LTD 29,105,512.43
18/03/2020 SOLIDTEAM INNOVATIVE PROJECTS LIMITED 17,009,523.80
18/03/2020 SOLID SOIL LTD. 37,714,285.71
18/03/2020 STONE CREEK GLOBAL VENTURES LTD 12,092,142.86
16/03/2020 M-SQUARE & FINISHING LTD 10,751,400.00
16/03/2020 FFA CONTINENTAL CONCEPT LIMITED 68,888,520.40
16/03/2020 KENNYZOT NIGERIA LIMITED 12,092,142.86
16/03/2020 WAIZAH GLOBAL RESOURCES NIG LIMITED 12,092,142.86
16/03/2020 HUX SYNERGY LTD 8,550,000.00
16/03/2020 LIBERTY DOORS GLOBAL SERVICES LTD 33,019,492.00
16/03/2020 BABUDAMUWA INTEGRATED SERVICES LTD 10,860,000.00
16/03/2020 NUR T GLOBAL MANAGEMENT LTD 6,183,702.00
16/03/2020 TW & PW INVESTMENTS LTD 31,245,192.25
16/03/2020 SKETCH AND SCAPE NIG LTD 8,535,037.50
16/03/2020 VOLTRICITY NIG LTD 42,543,367.02
16/03/2020 K.M KAMBA VENTURES NIGERIA LIMITED 16,245,428.57
16/03/2020 RASOLAK SERVICES NIGERIA LIMITED 10,751,400.00
16/03/2020 SHARINGAN RESOURCES LTD 16,285,714.29
16/03/2020 STOCKLEY AND FRIENDS SERVICES LTD 25,714,285.71
16/03/2020 TG & TG BRIGHT NIG LTD 37,337,142.86
16/03/2020 FFA CONTINENTAL CONCEPT LIMITED 27,427,857.14
16/03/2020 DREAM HOMES CONSTRUCTION LIMITED 14,161,244.87
16/03/2020 MURAD ENGINEERING NIG LTD 6,034,167.87
16/03/2020 MIRISTA INTERNATIONAL LTD ABUJA 46,706,523.80
16/03/2020 M-2 INTERNATIONAL LIMITED 6,006,978.20
16/03/2020 ATEEYA GLOBAL SERVICES LTD. 13,500,000.00
16/03/2020 SY – KINS VENTURES LTD. 41,580,000.00
16/03/2020 TALAKU INTEGRATED SERVICE LTD 7,213,720.50
16/03/2020 APEX IMPACT INTEGRATED LTD 35,215,714.29
16/03/2020 WALKON PRIME HUB LTD 17,325,767.50
16/03/2020 WESTSQUAD NIG LTD 6,428,571.43
16/03/2020 SANC-ZANG INTEGRATED LTD 10,687,500.00
16/03/2020 GOLDEN WHALE & PENGUIN INTEGRATED INVESTMENTS LIMITED 16,082,550.00
16/03/2020 M-2 INTERNATIONAL LIMITED 11,292,099.00
16/03/2020 GOLDEN WHALE & PENGUIN INTEGRATED INVESTMENTS LIMITED 35,215,714.29
16/03/2020 MARIDIQ NIGERIA LIMITED 32,216,793.57
16/03/2020 ROYAL UM KM NIGERIA LIMITED 17,157,698.25
16/03/2020 GUEDEST INVESTMENT LTD 6,348,375.00
13/03/2020 ZEELAN MULTI-SERVICES LIMITED 6,782,525.00
13/03/2020 K.M KAMBA VENTURES NIGERIA LIMITED 14,850,000.00
13/03/2020 WEB-MAG SERVICES NIG LTD 10,751,400.00
13/03/2020 PINKWELL MULTI-CONCEPT LTD 12,092,142.86
13/03/2020 IDEAL EXCLUSIVE SYSTEM & PROJECTS LTD 9,928,378.85
13/03/2020 STRUCTURAL SKYLINE LTD 12,138,657.30
13/03/2020 TRANS-NUBIAN ALLIED LIMITED 28,500,000.00
13/03/2020 AASCA NIGERIA LIMITED 6,080,000.00
13/03/2020 RAJAB ENT. NIGERIA LIMITED 9,122,142.86
13/03/2020 MUZAKAR PREMIUM INTERNATIONAL LTD 15,793,750.00
20/03/2020 SUPER DELUXE UNIVERSAL SERVICES LIMITED 6,063,309.27
20/03/2020 ZANKALIX INTEGRATED SERVICES LTD 6,010,295.81
20/03/2020 BLUE PEACOCK MULTIPURPOSE RESOURCES LTD 6,044,926.91
20/03/2020 PENDAC INDUSTRIES LIMITED 10,734,428.57
20/03/2020 WEB-MAG SERVICES NIG LTD 19,898,928.10
20/03/2020 GAGURE GLOBAL RESOURCES NIG LTD 20,820,977.10
20/03/2020 TOPCREST MULTI-FACETED VENTURES LIMITED 14,121,160.75
20/03/2020 ZANKALIX INTEGRATED SERVICES LTD 10,687,500.00
20/03/2020 GOLDEN WHALE & PENGUIN INTEGRATED INVESTMENTS LIMITED 14,319,691.05
20/03/2020 ZANKALIX INTEGRATED SERVICES LTD 42,543,705.60
20/03/2020 GAGURE GLOBAL RESOURCES NIG LTD 37,337,142.86
20/03/2020 RENNIES WORKS LTD 6,266,490.21
20/03/2020 NORTHSEAL GLOBAL INVESTMENT LTD 9,122,142.86
23/03/2020 BAFULATANA NIG LTD 46,214,876.20
26/03/2020 BONUS GLOBAL CONCEPT AND RESOURCES LIMITED 14,154,769.53
26/03/2020 GREEN GIANTS CONCEPT & SERVICES LIMITED 22,367,441.25
26/03/2020 ATTARIQ GLOBAL SERVICES LTD 35,215,714.29
26/03/2020 FISERV INTERNATIONAL LTD 9,360,443.99
27/03/2020 BARATA INTEGRATED SERVICES LTD 37,337,142.86
27/03/2020 J15 NIGERIA LIMITED 12,119,285.72
27/03/2020 BABUDAMUWA INTERGRATED SERVICES LTD 35,571,428.57
27/03/2020 HANTSI GLOBAL RESOURCES LTD 35,215,714.29
27/03/2020 BONUS GLOBAL CONCEPT AND RESOURCES LIMITED 25,525,419.23
27/03/2020 AJRASHAD GLOBAL CONCEPTS LIMITED 68,038,095.07
27/03/2020 PROCON GLOBAL SERVICES LTD 12,092,142.86
27/03/2020 STOCKLEY AND FRIENDS SERVICES LTD 64,491,428.57
27/03/2020 DALLAYI & BAKORI NIGERIA LTD 42,542,078.07
27/03/2020 HANTSI GLOBAL RESOURCES LTD 13,405,714.29
27/03/2020 MARTO GLOBAL LINKS LIMITED 16,122,857.14
27/03/2020 BSHAM BLOOM CONCEPTS LTD 12,092,142.86
27/03/2020 SALTINE ENGINEERING SERVICES LTD 17,147,468.74
27/03/2020 BARATA INTEGRATED SERVICES LTD 9,798,756.00
27/03/2020 SALTINE ENGINEERING SERVICES LTD 26,862,321.17
27/03/2020 PINKWELL MULTI-CONCEPT LTD 29,604,588.52
27/03/2020 ESTIVUS NIGERIA LIMITED 37,337,142.86
27/03/2020 ZUHAFA NIGERIA LIMITED 16,285,714.29
27/03/2020 FIRST MULTIPLE MICROFINANCE BANK LTD 15,000,000.00
27/03/2020 ROYAL SECURITY GUARDS LIMITED 17,878,457.14
27/03/2020 STONE CREEK GLOBAL VENTURES LTD 10,607,142.86
27/03/2020 MA NUMBU GLOBAL INVESTMENT LTD 40,307,142.86
30/03/2020 PINKWELL MULTI-CONCEPT LTD 29,604,588.52
30/03/2020 ESTIVUS NIGERIA LIMITED 37,337,142.86
30/03/2020 ZUHAFA NIGERIA LIMITED 16,285,714.29
30/03/2020 FIRST MULTIPLE MICROFINANCE BANK LTD 15,000,000.00
30/03/2020 ROYAL SECURITY GUARDS LIMITED 17,878,457.14
30/03/2020 STONE CREEK GLOBAL VENTURES LTD 10,607,142.86
31/03/2020 MA NUMBU GLOBAL INVESTMENT LTD 40,307,142.86
Rundown of Questionable “Double payments”
Further analysis showed that Zomrites 24/7 Buss Solution Ltd got two payments the same day amounting to ₦33.5 million (₦20.3m and ₦11.25m). The agency also paid ₦40.31 million to MA NUMBU GLOBAL INVESTMENT LTD on the 27th of March 2020. The same company also received the same amount on the 31st of March 2020.
On March 27th, SMEDAN paid ₦10.61 million to STONE CREEK GLOBAL VENTURES LTD. The same amount was also paid to the same company three days after. On the same date, it made a fictitious payment to FIRST MULTIPLE MICROFINANCE BANK LTD for the sum of ₦15 million and repeated the same amount on the 30th of the month. Within the same period, ZUHAFA NIGERIA LIMITED received ₦16.29 million on the 27th and 30th of March. Transactions worth ₦37.34 million each were also recorded for ESTIVUS NIGERIA LIMITED on the 27th and 30th of the month.
On March 16th, 27th, and 30th, it also paid ROYAL UM KM NIGERIA LIMITED the sum of N17.16 million, ₦17.88 million, and ₦17.88 million, respectively.
Continuing the trend on March 13, SMEDAN paid PINKWELL MULTI-CONCEPT LTD ₦12.09 million; thereafter disbursing two counts of ₦29.6 on the 27th and on the 30th of March. Overall, there were about 25 instances of these double-payments, all in March.
SMEDAN did federal business with 33 non certified contractors
Besides the contentious transactions, some of the companies are not qualified to bid or receive federal government contracts. Combining through the Bureau of Public Procurement’s website, Dataphyte found that most of the companies failed to meet basic requirements for bidding federal contracts. These requirements include prompt payment of workers’ pensions, company registration, remittance of federal taxes, among others.
For instance, G-Box Investment Nig. Ltd, which was paid ₦6.09 million on March 18th, 2020, for an unnamed service, is not tax compliant, according to BPP records. Also, ESTIVUS NIGERIA LIMITED, which got ₦75 million payment failed to meet tax (FIRS) obligations.
Further findings revealed that PINKWELL MULTI-CONCEPT LTD has no record on the federal government verified list of companies. Yet, SMEDAN paid the company more than ₦72 million in three batches in March.
Here’s a list of other unqualified contractors, 33 in total, viz:
S/N Companies Amount (₦)
1 STONE CREEK GLOBAL VENTURES LTD ₦33.3 million
2 ROYAL SECURITY GUARDS LIMITED ₦35.76 million
3 FIRST MULTIPLE MICROFINANCE BANK LTD ₦30 million
4 SALTINE ENGINEERING SERVICES LTD ₦43.9 million
5 BARATA INTEGRATED SERVICES LTD ₦47 million
6 ATTARIQ GLOBAL SERVICES LTD ₦35.2 million
7 GREEN GIANTS CONCEPT & SERVICES LIMITED ₦22.4 million
8 BONUS GLOBAL CONCEPT AND RESOURCES LIMITED ₦39.6 million
9 GAGURE GLOBAL RESOURCES NIG LTD ₦58.1 million
10 ZANKALIX INTEGRATED SERVICES LTD ₦59 million
11 GOLDEN WHALE & PENGUIN INTEGRATED INVESTMENTS LIMITED ₦65.3 million
12 HANTSI GLOBAL RESOURCES LTD ₦66.03 million
13 MURAD ENGINEERING NIG LTD ₦25.3 million
14 SACRUX GLOBAL INVESTMENTS LTD ₦14.1 million
15 TG & TG BRIGHT NIG LTD ₦55.5 million
16 SHELTER MADE INTEGRATED ₦17 million
17 HANTSI GLOBAL RESOURCES LTD ₦66.03 million
18 AGR INTEGRATED SERVICES LTD ₦25.5 million
19 FAIRFIELD ENGINEERING LTD ₦10.7 million
20 MAIDENHEAD GLOBAL VENTURES ₦24.8 million
21 HZ – GANI GLOBAL LTD ₦29.8 million
22 MAIJAKKA AND COMPANY NIGERIA ENTERPRISES LTD ₦24.8 million
23 PINKWELL MULTI-CONCEPT LTD ₦72 million
24 SOLID SOILS LTD ₦37.7 million
25 M-SQUARE & FINISHING LTD ₦10.75 million
26 FFA CONTINENTAL CONCEPT LIMITED ₦96.2 million
27 KENNYZOT NIGERIA LIMITED ₦12.1 million
28 WAIZAH GLOBAL RESOURCES NIG LIMITED ₦12.1 million
29 BABUDAMUWA INTEGRATED SERVICES LTD ₦46.4 million
30 ESTIVUS NIGERIA LIMITED ₦75 million
31 G-Box Investment Nig. Ltd ₦6.1 million
32 STOCKLEY AND FRIENDS SERVICES LTD ₦90.1 million
33 DALLAYI & BAKORI NIGERIA LTD ₦42.5 million
Total ₦1.33 billion
SMEDAN remains silent over queries on OTP violations
Efforts to reach SMEDAN for comments proved abortive. An official of the company who picked the reporter’s call hung up and failed to pick several calls after listening to the reporter’s questions on the fictitious and questionable companies. Several messages sent to the line were also not answered.
More so, Dr Dikko Umaru Radda, the Director-General of the agency, did not reply to messages sent to his official Twitter account.
Actions violate financial regulations 2009 and OTP guidelines
SMEDAN fictitious payments to unverified companies violated Section 113 (i) of the Financial Regulations 2009 and the Public Procurement Act, 2007. The Procurement Act mandated all procurement to pass through the “National Competitive Bidding’ and bidders must be registered or incorporated to carry on business under Nigerian law.
Moreover, SMEDAN omission of crucial details on the OTP continues to defeat the transparency and accountability initiative of the Federal Government’s open portal.
The Open Treasury Guidelines mandated all Ministries, Departments, and Agencies of government to ensure strict compliance with all reporting parameters. These are for payments MDAs make above ₦5 million. The parameters include Payment No, Payer Code, Agency, Beneficiary Name, Amount, and Description.
Despite this, several government parastatals continue to ignore this crucial aspect of the guidelines. In 2019, Dataphyte raised alarms over zero description transactions worth ₦510 billion. So far, in 2020, payments worth ₦210.4 billion have been masked by President Buhari’s administration.
Experts call for sanctioning of erring MDAs
These developments strengthen opaque processes in MDAs, and in turn corruption. And as a consequence impedes civil society and media organisations from tracking budget items and public procurement.
Giving opening remarks at the #FollowCOVID19Money Mega National Town Hall Meeting on Tuesday, December 8th, 2020, Hamzat Lawal, founder of Connected Development (CODE), urged governments at all levels to ensure that strict measures are in place for MDAs flaunting financial regulations.
Mr Iyanu Bolarinwa, Civic Hive’s Community Manager, also urged the Federal Government and the anti-corruption agencies to ensure proper sanctioning for any MDA erring against the Open government transparency initiative.
“It is not enough to release data on OTP and NOCOPO, but ultimately important to follow various procurement and open governance regulations. MDAs need to understand this and follow it to the letter,” Mr Bolarinwa added.
