The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has disclosed that corruption within Nigeria’s power sector is a major cause of the nation’s frequent power outage, as contractors frequently resort to using substandard products.
He disclosed this during an oversight visit by the House of Representatives Committee on Financial Crimes to the EFCC’s headquarters in Abuja, today.
Olukoyede highlighted how corrupt practices have compromised the sector’s infrastructure.
According to him, contractors awarded contracts to supply electricity equipment often cut corners, using cheaper, substandard materials instead of approved specifications which has led to frequent power outages and infrastructure failures.
This shortcut, he explained, has led to recurring equipment failures, resulting in frequent outages and power collapses.
Emphasizing the need for close collaboration with lawmakers, Olukoyede pointed to the power sector as a prime example of how corruption is hampering national development.
In addition, he outlined the EFCC’s new strategy focused on asset tracing, recovery, and, more crucially, prevention.
He said, “As we speak, we are grappling with electricity. If you see some of the investigations we are carrying out within the power sector, you will shed tears.
“People were awarded contracts to supply electricity equipment. Instead of using what they call 9.0 guage, they will go and buy 5.0.
“Every time you see the thing tripping off, the thing gets burnt, and all of that, it falters and it collapses. It’s part of our problems.”
According to Olukoyede, while recovering misappropriated funds remains vital, prevention is more cost-effective.
EFCC’s asset recovery successes over the past year amount to 440 billion Naira and billions in foreign currency, a figure Olukoyede says underscores the scale of funds being siphoned.
He added, “For every 10 Naira recovered, perhaps 30 or 40 Naira may have been stolen.
“If we recover about 440 billion Naira and several billions of dollars in a year, imagine the total amount siphoned from our system. That’s the unfortunate reality.
“Thus, we are focusing on prevention. Over the last year, we have established a new directorate for risk assessment and control.
“To recover 10 Naira, you may spend between 4 and 5 Naira. But to prevent 10 Naira from being stolen, you spend less than 1 Naira, based on our research and experience.
“Prevention is, therefore, the more effective way to combat corruption.
“We need more resources to carry out our mandate effectively. Our staff are underpaid, and we need to improve their welfare.”
Credit: Nigerian Tribune