Editorial

NAICOM’s N4bn building controversy

In recent weeks, there has been controversy over the approval granted by President Muhammadu Buhari and the Federal Executive Council (FEC) for the purchase of a new office complex in Abuja valued at N4bn by the National Insurance Commission (NAICOM). According to reports, the commission had, during its presentation to the FEC, given the impression that the said office was a ready-to-use edifice that easily out-classed its current office in the Garki 2 District of Abuja.

However, the value of the said building, which was initially put at N2.5 billion, was allegedly raised to N4 billion by the time the presidential assent was obtained. Things how-ever took a different turn when members of the commission’s board went on an inspection tour of the facility and discovered that it was still under construction. Again, the

Director of Finance and Administration of the agency who had reportedly advised against the proposed purchase un- til the approval was cash-backed, was allegedly removed from the commission’s headquarters and redeployed to its Lagos office. Indeed, the management was accused of taking steps to beat the August 25 2022 deadline for the withdrawal of the cash from the account of the commis- sion domiciled in the Central Bank of Nigeria (CBN), a step which did not go down well with the board of the agency.

As the controversy festered, the Federal Government, rightly in our view, halted the purchase until further notice. The Minister of Finance, whose ministry supervises the agency, also constituted a panel to probe the entire process relating to the purchase of the uncompleted building. Reacting to the saga, the NAICOM management indicated that it had, prior to the FEC approval, obtained a

“No Objection” verdict from the Bureau of Public Procure- ment (BPP) following the valuation of the property by the

Federal Ministry of Works and Housing, adding that ade- quate due diligence was conducted on the property. The property, it said, “was to be acquired as NAICOM Academy and office accommodation following the approval by the immediate past Governing Board of the Commission.” Crucially, it added that “all documents relating to the property clearly state that the property was in an unfinished state” and that provision was made in the 2022 approved budget of the commission for the purpose of the acquisition.

It is instructive to note that were it not for the opposition by the board of NAICOM, purchasing the uncom- pleted building at the centre of this story would have been a done deal. If indeed the management of the commission presented the building to FEC in its true state, then on what basis did it approve the purchase at such a humongous sum? Why was the impression given that the NAICOM management was desperate to see the deal through even when legitimate questions had been raised over the propriety of going ahead with the purchase of the edifice? It is important for the Buhari administration which prides itself in fighting corruption to show absolute intolerance for the kind of impropriety suspected to be at the heart of the NAICOM building controversy. At the very

, to conserve public funds and give value for money, expect audit control to vet the presentations made to the FEC. If anything, the current controversy at NAICOM speaks to the unending negative drama often associated with governance in Nigeria. The point cannot be ignored that the board of NAICOM was not in support of purchasing an uncompleted building deceptively presented as an edifice ready for occupation while the management was pos- itively predisposed to the deal. Normal governing routine precludes the management from proceeding with fundamental actions without the concurrence and approval of its board. It is egregious that the FEC could receive proposals from the NAICOM management outside of the ap- proval of its board. The fact that getting approval from FEC without the NAICOM’s board approval was contemplated suggests that governance is not being conducted in consonance with known rules, and this is the basis of the disorganisation and lack of proper coordination and effective performance in government. Those in charge of governance and government must realise that the real purpose of government can only be pursued and achieved through scrupulous adherence to the rules and regulations and not through whimsical infringement of the pro- cesses and regulations.

There is a reason a board exists to supervise the NAICOM management and this reason should be taken into consideration and respected even while the FEC exercises its overarching supervision over the two levels. We do not see how a diligent and careful adherence to rules and proper evaluation at all levels would lead to the purchase of a building under construction for such a huge sum. Gov- ernment has a duty to insist on following due process and the uncanny desire to expend public funds in a wasteful manner. Needless to say, the result of the ongo- ing probe should be made public and appropriate steps taken on it.

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