Niger Delta Development Commission (NDDC)

Project Location/State

Rivers State State

Award Year


Contract Sum


Amount Paid





(a) Examination of the NDDC contracts payment status from the Finance and Accounts department revealed that the contractor has been paid 94% of the contract sum, translating to N980,209,440.00.
(b) Information gathered from the Project Monitoring, Evaluation and Inspection Directorate of NDDC Projects Performance Status report as at January, 2018 put the level of work done by this contractor at 89%. During the audit checks in 2018, exactly seven years after the award, it was discovered that the contractor has abandoned the site completely. The only thing left on site were administrative office and some little materials scattered on the ground. The building is reasonably completed, only the outside works such as the pavements and parking lots were outstanding. Being left unused for a very long time, the structure have started deteriorating. Further investigation revealed that the contract is said to be abandoned due to lack of funds and that several items of works that will make the hospital functional were not captured in the contract bill of quantities (BOQ). This was due to the fact that due diligence and feasibility studies were not carried out before the contract was initially awarded. The due process for the award of this contract was not produced for audit examination despite repeated demand.
(c) In view of the abandonment of the project without it being re-awarded for completion, the amount spent so far on the project can be seen as a deliberate wastage of government fund.

Wastage of government resources: Funds were being paid without any benefit being derived from the project as the project was abandoned and funds committed into the project wasted.
Internal control failure: Checks were meant to be carried out to ensure processes are being adhered to. Controls put in place by management seems to be inadequate.

(i) It is recommended that the Managing Director should explain why the sum of N980,209,440.00 was expended on such important project and it is non-functional.
(ii) All efforts must be put in place to ensure immediate completion of this project that have high potential of positive impact on the region and to avoid the waste in government’s scarce resources.



Beneficial Ownership Information


Legislative Recommendation


Executive Action


Progress Report


Data Source

2013-2018 Audit Report on NDDC

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