The Corporate Affairs Commission (CAC) is once again at the centre of a major accountability controversy after the Auditor-General of the Federation reported that the agency spent N118.75 million in 2022 without any supporting documents, raising deeper concerns about transparency, internal controls, and the integrity of Nigeria’s public finance management system.

According to findings from an 808-page audit report submitted to the National Assembly, the CAC processed the multi-million-naira payments without invoices, memos, purchase orders, or evidence of services rendered.

The report describes the transactions as clear violations of Nigeria’s Financial Regulations (2009), which mandate strict documentation for all public expenditures.

The revelation, which first surfaced via investigative reporting by Premium Times, has intensified debates over governance practices in Nigeria’s public sector, where weak documentation, opaque spending, and poor oversight remain persistent challenges.

CAC Spent N118.75m Without Documentation – Auditor-General’s Findings Spark Fresh Concerns

The audit report identifies the N118.75 million expenditure as one of several red flags pointing to weak financial management within the CAC.

Paragraph 603(i) of the Financial Regulations requires that payment vouchers must be supported by complete documentation, while Paragraph 415 warns that funds must not be spent solely because they appear in the budget.

However, the Auditor-General noted that CAC violated these provisions, approving payments with no explanation, no receipts, and no traceable accountability framework.

When queried, the CAC claimed that a significant portion of the funds was paid to National Assembly committees to support oversight visits to CAC offices nationwide.

The Commission stated that lawmakers typically prepare oversight reports for legislative use, and such documents were not returned to CAC for filing.

But the Auditor-General rejected this explanation, stressing that:

• spending for legislative oversight must still be documented;

• public funds cannot be released without proper approvals;

• the practice of agencies funding lawmakers’ oversight is itself questionable and potentially unconstitutional.

The Auditor-General, therefore, directed the Registrar-General of CAC to appear before the National Assembly’s Public Accounts Committees, recover the N118.75 million, remit the funds to the treasury, and submit proof of compliance.

Failure to meet this directive may trigger sanctions under Paragraph 3106, including recovery from officers involved and possible removal from office.

Lawmakers’ Oversight Funding: A Controversial Practice Under the Spotlight

Stakeholders say the audit findings expose a troubling dynamic in Nigeria’s governance structure.

For years, government agencies have quietly funded the oversight activities of legislators—a practice that critics argue:

• blurs lines between oversight and financial influence;

• creates conflicts of interest;

• weakens the independence of the legislature.

Analysts warn that when agencies bankroll lawmakers’ visits, objectivity in oversight is jeopardised, and accountability becomes compromised.

The audit report’s rejection of CAC’s justification signals a new push toward ending such hidden arrangements and strengthening institutional independence.

More Irregularities: Missing CAC Vehicles Linked to Supervising Ministry

Beyond undocumented spending, the audit uncovered another serious issue: six vehicles belonging to the CAC were unaccounted for.

Five of the vehicles were reportedly being used by officials of the Federal Ministry of Industry, Trade and Investment (FMITI), while one was in the custody of a Special Assistant to the ministry’s Permanent Secretary. There was no written approval authorising these transfers.

This discovery raises questions about ministerial overreach, asset misuse, and violation of the rule that prohibits ministries from appropriating vehicles belonging to agencies under their supervision.

Although the CAC claimed the vehicles were assigned temporarily as “project vehicles,” the Auditor-General dismissed this explanation, insisting the vehicles must be retrieved and formally documented.

If the CAC cannot control its fixed assets, analysts warn, it risks losing credibility as the regulator of Nigeria’s corporate ecosystem.

Questions Over Legal Fees: N123.94 Million Paid Without Attorney-General’s Approval

The audit also identified another financial breach: CAC spent N123.94 million on external legal services without obtaining the required clearance from the Attorney-General of the Federation.

Financial regulations require:

• official instruction letters;
• service reports;

• supporting court documents;

• and proof that the Attorney-General approved the engagement of external counsel.

CAC argued that provisions within CAMA 2020 empower the Registrar-General to control the Commission’s finances and hire legal representation where necessary.

However, the Auditor-General dismissed the defence as insufficient, ordering the recovery of the entire N123.94 million and directing the Commission to remit it to the treasury.

Systemic Issues: What the Audit Says About Governance in Nigeria

The audit findings reflect deeper structural deficiencies in Nigeria’s public finance system. Weak documentation, informal approvals, improper asset transfers, and disregard for financial rules remain widespread across ministries, departments, and agencies.

Experts say CAC’s issues are symbolic of the broader:

• lack of transparency;

• blurred supervisory boundaries;

• weak internal audit systems;

• and limited compliance with financial laws.

The involvement of FMITI in the missing vehicles incident underscores a longstanding governance challenge—supervising ministries often exert informal control over agencies, sometimes beyond legal limits.

For a regulatory institution like the CAC, which oversees corporate integrity nationwide, such lapses erode public trust and raise questions about its ability to enforce compliance in the private sector when it is struggling with its own accountability.



The coming weeks will determine how CAC responds to the Auditor-General’s directives.

Should the Commission fail to provide evidence of recovery and remittance of the funds, it may face sanctions, institutional reforms, and possible leadership changes.

The audit report has already intensified calls for:

• stricter enforcement of Nigeria’s Financial Regulations;

• transparency in legislative oversight funding;

• stronger internal controls within MDAs;

• and greater independence for public sector auditors.

As Nigeria pushes for improved governance and public sector accountability, cases like CAC’s will serve as critical test points for reforms aimed at strengthening trust in public institutions.