INVESTIGATION: How Ebonyi Gov't Violates Procurement Law, Awards N3.7bn Projects to Inactive Firms
By Timileyin Akinmoyeje
Between May and July 2025, the Ebonyi State Government handed out seven contracts worth a total of N3.69 billion to companies that are listed as “inactive” in the Corporate Affairs Commission (CAC)’s records, FIJ has found.
The state’s procurement portal shows that 20 contracts were awarded between May and July. Seven of them, awarded to inactive companies, were for road projects and constituency boreholes across Ishielu, Izzi, Abakaliki, Afikpo and Ezza LGAs.
One of the biggest contracts went to HC Carter Ventures Ltd, an inactive company, which received N2,070,887,506 in May for the construction of a 5,000-metre concrete rigid pavement (Phase 2 from TTC to Iboko Road in Izzi LGA).
In the same month, Multivisiondokario Mega Ltd, also inactive, got N805,511,860 to build 2,122.52 metres of internal roads within the Ama-Eze Housing Project in Ishielu LGA.
Wokor Services Company Limited, another inactive firm, was awarded N660,938,540 for the construction of 2km of Achara Unuhu Road Phase 3 in Abakaliki LGA.
In July, Crustal Geotechnical Resources Ltd, Perfect Consolidated Systems Technology Ltd, Luchy’s Resources Nigeria Ltd and Jamklef Geoconsult Ltd, all listed inactive, were paid between N40 million and N42 million each for drilling and installing hand pump/motorised boreholes for constituency projects in different parts of the state.
In total, the seven companies received N3,699,338,201 in public contracts even though they were not in good standing with CAC.
Section 21 of the Ebonyi State Procurement Law (2020) states that any contractor vying for state projects must have “fulfilled all its obligations to pay taxes, pensions and social security contributions” and must not falsify or conceal any information.
An inactive CAC status suggests failure to file annual returns and meet basic compliance requirements. These conditions should disqualify an entity from getting a government contract.
Under Section 421 of the Companies and Allied Matters Act (CAMA) 2020, every registered company in Nigeria must file its annual returns no later than 42 days after its annual general meeting each year. Section 425 states that any company that fails to do so is liable to fines imposed by the CAC.
Section 525 gives the CAC the power to treat a company as not carrying on business if it repeatedly fails to respond to inquiries or statutory notices. After two unanswered notices within 14 days each, the CAC can proceed to publish a notice in the Federal Gazette and, after 90 days, strike off the company’s name from the register.
SOURCE: FOUNDATION FOR INVESTIGATIVE JOIRNALISM
