Audit report raises fresh concerns over transparency as OSOPADEC fails to produce contract documents for seven multi-billion-naira projects, while scrutiny grows over beneficiary companies and procurement compliance.
By Angela Unigbe
AKURE, Nigeria — July 8, 2026
The Ondo State Oil Producing Areas Development Commission (OSOPADEC) is facing renewed scrutiny after the 2025 Report of the Ondo State Auditor-General questioned the management of approximately ₦6.7 billion in public contracts, citing the Commission’s failure to provide critical procurement documents for seven major projects.
The audit findings have intensified concerns over accountability in the management of funds earmarked for the development of Ondo State’s oil-producing communities, with auditors stating that the absence of contract records prevented verification of whether due procurement procedures, financial regulations and implementation standards were followed.
Beyond the missing documentation, independent corporate record checks have also raised questions about some of the companies awarded the contracts, including firms incorporated only shortly before receiving contracts and another whose corporate registration could not immediately be verified.
Audit Raises Red Flag Over Missing Contract Documents
In the Auditor-General’s report for the financial year ended December 31, 2025, auditors disclosed that repeated requests for contract files relating to several projects were not honoured by OSOPADEC.
Under the section titled “Contract Documents Not Produced,” the report stated:
“We requested for the under-listed contract documents, but the Commission is yet to oblige Audit of same.”
The absence of these records meant auditors were unable to determine whether:
- Procurement procedures complied with applicable laws;
- Contracts received proper approvals;
- Competitive bidding requirements were followed;
- Payment schedules were justified;
- Performance guarantees existed; and
- Projects were executed according to approved specifications.
Without these documents, the audit concluded that compliance with public procurement regulations could not be independently verified.
Seven Projects Worth ₦6.7 Billion Queried
The contracts identified in the report cover security infrastructure, educational interventions and road construction projects across Ilaje and Ese-Odo Local Government Areas.
The projects include:
1. Community Enumeration Project
- Project: Community Listing/Identification of Mandate Areas
- Contractor: DD Cyrusrex Enterprise
- Contract Value: ₦353,679,650.22
- Completion Period: Six months
2. Naval Security Checkpoints with Landing Jetty (Ebighan)
- Contractor: Digma Integrated Services Limited
- Contract Value: ₦1,568,169,688.62
- Completion Period: Twelve months
3. Naval Security Checkpoint (Apata Boundary)
- Contractor: Jossica Solution Limited
- Contract Value: ₦944,888,835.97
- Completion Period: Twelve months
4. Supply of School Furniture
- Project: Supply of 4,000 Twin Desks and Chairs
- Contractor: Progress Woods and Metal Industries Limited
- Contract Value: ₦502,148,625.00
5. Marine Police Checkpoint at Odun Oyinbo
- Contractor: RJJ Technical Limited
- Contract Value: ₦1,507,729,158.78
6. Naval Security Checkpoint with Landing Jetty (Atijere)
- Contractor: KENAX Integrated
- Contract Value: ₦357,161,719.23
7. Construction of One-Kilometre Road at Sabomi
- Contractor: Phenkens Nigeria Limited
- Contract Value: ₦1,462,147,190.40
- Completion Period: Eighteen months
Collectively, the contracts amount to approximately ₦6.7 billion.
Questions Raised Over Some Beneficiary Companies
Independent reviews of publicly available Corporate Affairs Commission (CAC) records have raised additional questions regarding some contractors named in the audit.
According to publicly available corporate records:
- DD Cyrusrex Enterprise was incorporated on January 16, 2025.
- Jossica Solution Limited was incorporated in July 2024.
- RJJ Technical Limited was incorporated in May 2025.
While recently incorporated companies are not automatically disqualified from participating in public procurement, procurement experts note that agencies are generally expected to assess bidders’ technical capacity, financial standing, tax compliance, and experience before awarding major public contracts.
The Auditor-General’s report does not conclude that any procurement law was breached but states that the absence of procurement records prevented auditors from making that determination.
Corporate Records for One Contractor Not Immediately Verifiable
Further scrutiny centred on Phenkens Nigeria Limited, the company listed as handling the ₦1.46 billion road project in Sabomi.
Independent searches of publicly accessible corporate registration databases reportedly did not immediately produce a matching record for the company at the time of the review.
However, the absence of a publicly accessible record does not by itself establish that a company is unregistered, as verification may depend on the availability, accuracy or updating of official databases.
Nevertheless, the inability to independently verify the company’s registration has added to calls for greater transparency regarding the procurement process.
Missing Records Limit Audit Verification
Public procurement experts say contract documentation serves as the foundation for accountability in government spending.
Such records ordinarily include:
- Procurement approvals;
- Bid evaluation reports;
- Contract agreements;
- Performance bonds;
- Payment certificates;
- Variation approvals;
- Completion certificates; and
- Inspection reports.
Without these documents, auditors are unable to determine whether public funds were spent in accordance with the law or whether projects achieved their intended objectives.
Fresh Questions Amid Previous Allegations
The audit findings emerge against the backdrop of earlier allegations involving OSOPADEC.
Earlier reports had raised concerns about alleged financial mismanagement, internal administrative disputes and delays in project execution within the Commission.
Following the inauguration of the current OSOPADEC Board in June 2025, expectations were high that longstanding infrastructure deficits in Ondo’s oil-producing communities would be addressed.
The Commission reportedly received a 2025 budgetary allocation of approximately ₦33.8 billion for development programmes.
However, critics have questioned the pace of project implementation across the mandate areas.
Experts Call for Greater Procurement Transparency
Governance and procurement specialists say the latest audit reinforces the need for stronger compliance with Nigeria’s public procurement framework.
They argue that timely production of procurement records is essential for effective legislative oversight, external auditing and public accountability.
Analysts further note that transparent procurement processes help build public confidence and reduce opportunities for financial mismanagement in agencies responsible for community development.
OSOPADEC Yet to Respond
As of the time of filing this report, OSOPADEC had not publicly responded to the Auditor-General’s findings or the issues raised regarding the missing procurement documents and beneficiary companies.
A1NEWS International will update this report should the Commission issue an official response or clarification.
The Ondo State Auditor-General’s findings have placed OSOPADEC’s procurement practices under renewed public scrutiny, particularly regarding the Commission’s inability to produce documentation supporting contracts valued at approximately ₦6.7 billion.
While the audit does not conclude that procurement laws were violated, the absence of essential records has prevented independent verification of compliance and value for money.
As calls for greater transparency grow, stakeholders are expected to demand comprehensive explanations from the Commission to reassure oil-producing communities that public resources intended for development are being managed in accordance with the law.
Leave a Reply