How Dikko Umaru Radda-led SMEDAN disbursed ₦1.3bn to 33 unverified contractors

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.

……..

This report is part of the fulfilment of the ATUPA fellowship by Civic Hive in collaboration with the US Embassy.