Nigeria Loses N2.5 Trillion to Fraud Every Year- SFAFP Reveals

The Society for Forensic Accountants and Fraud Prevention (SFAFP), a body that studies the management of funds by Government agencies, has revealed that Nigeria loses N2.5 trillion yearly in the national budget to public sector fraud and corruption.

SFAFP Chairman ‘Iliyasu Gashinbaki’, revealed that in Africa, 25% of annual budgets of countries are diverted through bad schemes by politicians. 

Gashinbaki, speaking at a virtual induction of 192 associates of SFAFP at the weekend, revealed public officers mismanaged government money by unlawful use of public assets for private advances, underpayment of taxes and duties on export as well as import.

Other methods of embezzlement include payment of salary to ghost workers; bribery and extortion; payment for air supply (goods or services not provided or rendered); over and under-invoicing; fraudulent court awards of financial compensations above damage suffered.

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“Recent studies have shown that most African governments struggle with the huge debt burden, in addition to huge loss of revenue due to fraud and corruption consistently draining its little resources.

“In Nigeria, N2.5 trillion is lost yearly to fraud using schemes like over and under-invoicing’. He said.

“Other ways include fraudulent court awards of financial compensations above damage suffered, fraud and embezzlement include payment of salary to ghost workers; bribery and extortion; payment for air supply and goods or services not provided or rendered.

According to Gashinbaki, the SFAFP, would continue to provide technical support for the public and private sectors.