Ambassador Chiedu Osakwe’s NOTN Flagged for Hundreds of Millions in Extra-Budgetary Spending, Unapproved Travel and Diverted Capital Funds

Secrets Reporters

In an Annual Report on Non-Compliance and Internal Control Weaknesses for the year ended 31 December 2020, obtained by SecretsReporters, the Nigerian Office for Trade Negotiations stands out for a cluster of high-value expenditure irregularities totalling hundreds of millions of naira in the 2019 financial year.

SecretsReporters examined the findings covering the period when Ambassador Chiedu Osakwe, the agency’s pioneer Director-General and Chief Trade Negotiator appointed in June 2017, led the office until his death in Geneva on 22 September 2019. After his passing, the small agency continued under interim leadership, with Victor Liman later recorded as Acting Director-General.

It was found that ₦101.86 million was spent through warrant lines and GIFMIS releases without recorded approval from the National Assembly or the Minister of Finance.

The expenditure breached Section 80(4) of the 1999 Constitution and Financial Regulations 417 and 301, which prohibit unauthorised extra-budgetary spending and improper virement. Management insisted the agency’s overhead expenditure matched its releases exactly and suggested the observation may have been drawn from another institution, yet the Auditor-General recommended recovery of the full sum under Regulation 3129.

A related finding showed that ₦71.92 million budgeted under the capital vote for fixed assets, library books, equipment and intangible assets was instead applied to estacodes, local running costs, security-document printing, advances, overtime and identity cards without any approved virement.

The diversion again violated Section 80(4) of the Constitution and Regulations 417 and 415. Management argued the spending supported core AfCFTA-related negotiations ahead of Nigeria’s July 2019 ratification, but the recommendation for recovery remained unchanged.

Further scrutiny revealed ₦198.16 million paid to companies and officers through 180 same-day transactions carrying identical particulars. Deducted VAT and withholding tax were returned to the contractors rather than remitted to the Federal Inland Revenue Service, contrary to Financial Regulations 234 and 415.

Management denied any double or triple payments and maintained that the required tax deductions had been made; auditors nevertheless called for recovery and remittance under Regulation 234(ii).

Overseas travel attracted two substantial queries. One recorded ₦123.78 million paid for foreign trips without the Secretary to the Government of the Federation or Head of Civil Service approval required by Establishment Circular SGF/OP/I/S.3/XII/158 of 15 October 2019.

A second, overlapping finding put total international travel and related costs at ₦149.03 million, including estacode and local running expenses, again without stamped passports, visas, boarding passes, attendance certificates or formal approval. Management maintained that the journeys formed part of the agency’s statutory mandate to negotiate with African, Commonwealth, European and Asian partners and that all necessary approvals had been obtained. The Auditor-General recommended recovery of both sums under Regulation 3106.

Misapplication of funds continued with ₦46.29 million budgeted for training that was instead paid to staff for local travel without legislative or ministerial approval, again engaging Section 80(4) of the Constitution and Regulations 417 and 415. Separately, ₦24.99 million was moved from the overhead vote to various sub-heads through 18 journal entries processed by an officer lacking authority and without paid vouchers or supporting documents, breaching Regulations 708, 603(i) and 601.

Finally, cash advances of ₦28.58 million for the procurement of goods and services exceeded the ₦200,000 threshold set by Treasury Circular TRY/A7&B7/2015 and Regulations 2302(ii) and 1420, generating an estimated tax-revenue loss. In each case management offered explanations tied to operational necessity or system migration; the Auditor-General’s consistent response was a call for full accounting and recovery.

Taken together, these eight findings portray an agency created to strengthen Nigeria’s position in international trade negotiations that, during its formative years under Ambassador Osakwe and the subsequent transition, operated with significant weaknesses in budgetary discipline, travel control and expenditure documentation.

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