Ondo State Audit Questions OSOPADEC's N6.7 Billion Deals, Documents Absent

The Ondo State Auditor-General's 2025 report has brought to light serious concerns regarding accountability and transparency in the handling of billions of naira designated for development initiatives within the state's oil-producing areas. Auditors revealed that the Ondo State Oil Producing Area Development Commission (OSOPADEC) failed to present crucial contract documents for seven projects collectively valued at approximately N6.7 billion.

This audit discovery, detailed in the Auditor-General's report for the fiscal year ending December 31, 2025, has ignited questions about whether proper procurement procedures were adhered to in the award of these multi-billion-naira contracts. Independent investigations by SaharaReporters further uncovered that several of the companies benefiting from these contracts were only recently established, while one entity could not be found in official corporate records.

Under the specific heading, "Contract Documents Not Produced," the Auditor-General explicitly stated: "We requested for the under listed contract documents, but the Commission is yet to oblige Audit of same." OSOPADEC's inability to provide these requested records prevented auditors from verifying if the contracts complied with existing procurement laws, financial regulations, approved terms, or implementation standards.

The seven contracts encompass security infrastructure, educational support, and road construction across the Ilaje and Ese-Odo local government areas. One such contract was for the "Community Listing/Identification of the Mandate Area in Ilaje and Ese-Odo Local Government Area of Ondo State," awarded to DD Cyrusrex Enterprise for N353,679,650.22, with a six-month completion timeframe. Although the audit report did not specify the exact award date, an independent review by SaharaReporters of the Corporate Affairs Commission (CAC) beneficial ownership database showed DD Cyrusrex Enterprise was incorporated on January 16, 2025. This incorporation date suggests the company would have been only a few months old if the contract was awarded in 2025, implying it could not have legally secured the contract before its registration.

Another project flagged by auditors was the "Construction of Naval Security Checkpoints with Landing Jetty at Ebighan in Ilaje LGAs," assigned to Digma Integrated Services Limited for N1,568,169,688.62, with a 12-month completion period. The audit also identified the "Construction of Naval Security Checkpoints at Apata Boundary at Ilaje Local Government Area, Ondo State," awarded to Jossica Solution Ltd for N944,888,835.97, also with a 12-month completion timeframe. Data from the CAC beneficial ownership database, reviewed by SaharaReporters, indicated that Jossica Solution Limited was registered in July 2024, meaning it had a relatively short operational history before securing the nearly N945 million contract.

Auditors further reported OSOPADEC's failure to provide documentation for the "Supply of 4,000 Twin Desks and Chairs to Schools in Ilaje and Ese-Odo Local Government of Ondo State," awarded to Progress Woods and Metal Industries Limited for N502,148,625.00, with a six-month deadline. Also listed was the "Construction of Marine Police Checkpoint on Pile at Odun Oyinbo, Ilaje Local Government Area of Ondo State," awarded to RJJ Technical Limited for N1,507,729,158.78. SaharaReporters' independent verification revealed that RJJ Technical Limited was incorporated in May 2025. This timeline raises additional questions about how the company met procurement requirements typically expected for contracts of such magnitude, including tax compliance, technical expertise, and professional experience. If the contract was awarded shortly after incorporation, the company would have been only a few months old when it secured the N1.5 billion project, and any award prior to its incorporation would have been impossible.

The audit report also highlighted the "Construction of Naval Security Checkpoints with Landing Jetty at Atijere in Ilaje Local Government Area of Ondo State," awarded to KENAX Integrated for N357,161,719.23. The final contract in question involved the "Construction of 1 km road at Sabomi in Ese-Odo Local Government Area of Ondo State," awarded to Phenkens Nigeria Limited for N1,462,147,190.40, with an 18-month completion period. However, SaharaReporters' attempts to independently verify the existence of Phenkens Nigeria Limited were unsuccessful, as searches of the Corporate Affairs Commission's beneficial ownership register yielded no records, and digital footprint checks found no verifiable website or social media presence.

The absence of contract documentation, coupled with the suspicious circumstances surrounding some of the beneficiary companies, severely hampered the auditors' capacity to ascertain whether statutory procurement procedures were followed. Contract documents typically include vital records such as procurement approvals, bidding documents, contract agreements, performance guarantees, payment schedules, project variations, and completion certificates. Without these records, auditors could not independently confirm if the contracts were legitimately awarded, payments were justified, or if projects were executed according to approved specifications and timelines.

These latest audit findings compound previous allegations against the intervention agency. In February, SaharaReporters reported that OSOPADEC, under the chairmanship of Prince Otabiyi Olaleye Poroye, was facing accusations of corruption, financial mismanagement, and internal conflicts. Following Governor Lucky Orimisan Aiyedatiwa's inauguration of the new OSOPADEC board on June 16, 2025, there were high expectations that long-standing infrastructure deficits in oil-producing communities would be addressed. Despite receiving a 2025 fiscal allocation of N33.8 billion for development projects, reports indicated minimal visible progress across the mandate areas. SaharaReporters also detailed allegations of an internal power struggle over the Commission's finances, which reportedly crippled decision-making and stalled development projects.

The Auditor-General's recent revelations, combined with SaharaReporters' independent verification of the beneficiary companies, are expected to intensify scrutiny over OSOPADEC's procurement practices and fuel renewed calls for authorities to account for the management of billions of naira allocated for development in Ondo State's oil-producing communities.