Nigeria's Fake Federal Agency Scandal: Tinubu Orders Probe into 1.3bn Naira Fraud
Nigeria Fake Agency Scandal: Tinubu Orders Probe into 1.3bn Naira Fraud

Nigeria's President Bola Ahmed Tinubu has ordered an investigation into how a fictitious federal agency, the Presidential Foreign Intervention Promotion Council (PFIPC), was allocated 1.3 billion naira (£700,000) in the country's 2026 budget. The scandal has triggered a political storm in Africa's largest democracy as it heads into a general election set for January.

The fake agency came to light in October when Femi Gbajabiamila, the president's chief of staff, wrote to the police alleging that his signature, along with official seals and reference numbers, had been forged by Adeniyi Adeyemi Matthew. Matthew claimed to have been appointed by the presidency to head the PFIPC.

Court Case and Charges

The case is due to be heard in a court in Abuja on 27 July. The police have filed an eight-count charge against Adeyemi and two others, including criminal forgery, impersonation, and obtaining by false pretences.

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In a 1 July statement, the Nigerian presidency also claimed Adeyemi had met ambassadors without the knowledge of the foreign affairs ministry and misled the accountant-general's office into opening accounts for PFIPC with the central bank and 33 commercial banks. The actual Nigerian Investment Promotion Council had reportedly raised an alarm about the similarities with the PFIPC.

Office Space and Collusion Suspicions

Apart from being included in the budget, the PFIPC was allocated office space in the federal secretariat in Abuja, a huge complex housing Nigeria's civil service headquarters and many government ministries. This has raised questions about how Adeyemi gained access, with some critics speculating collusion with high-level government officials.

“Politicians and members of the public who are weaponising Adeyemi’s claim against the chief of staff should refrain from swallowing his narrative hook, line and sinker,” the presidency statement said, defending Gbajabiamila. Local reports say Adeyemi has claimed he received the appointment letter from Gbajabiamila, who has denied knowing him or ever being in touch.

Investigation and Political Reactions

On Monday, Tinubu directed the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to open a probe. Days later, a Senate motion to independently investigate the PFIPC did not pass. Meanwhile, the House of Representatives set up a committee to question Abubakar Atiku Bagudu, the minister of budget and economic planning.

The presidency and supporters of the ruling party have pointed out that Adeyemi had previously misrepresented himself as the newly elected president-general of a UN youth agency called the World Youth Organisation in 2017. His aides had claimed he was seeking permission from the UN Security Council to appoint staff worldwide. It later turned out that the WYO was not affiliated with the UN.

Controversial Records of Officials

Critics of the Tinubu administration have highlighted the controversial records of key government officials mentioned in the scandal. In 2007, the Supreme Court of the US state of Georgia handed Gbajabiamila a three-year suspension from practising law in Atlanta after he failed to pass on $25,000 awarded as an injury settlement to a client four years earlier. Gbajabiamila paid back the money in 2006 and admitted violating professional conduct rules, but blamed the incident on a paralegal.

Bagudu spent six months in a federal prison in Houston in 2003. According to the US Department of Justice, he was arrested for being an alleged accomplice to former dictator Sani Abacha, who “embezzled, misappropriated and extorted billions of dollars from the government of Nigeria” amounting to more than $282 million in one instance. Bagudu reportedly agreed to return $163 million to Nigerian authorities, who dropped all cases against him, leading to his release without admission of wrongdoing.

Pressure Ahead of Elections

The latest scandal has piled pressure on Tinubu ahead of January's election, thrusting endemic corruption back into the spotlight. Former Vice-President Atiku Abubakar, who is due to challenge Tinubu's re-election bid, called for an independent commission of inquiry comprising neutral parties such as civil society leaders, opposition parties, and the Nigerian Bar Association.

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“Nigerians deserve the whole truth, not carefully scripted press statements,” his spokesperson Phrank Shuaibu said earlier this month, adding: “We therefore demand a truly independent investigation that follows the evidence wherever it leads. No sacred cows. No political protection. No selective justice.”