N2.6 Billion Federal Contracts Go To Inactive Firms on CAC Register

A recent investigation into federal government payment records has brought to light a significant issue: at least five companies officially designated as “inactive” on the Corporate Affairs Commission (CAC) portal collectively received over N2.6 billion in federal government contracts and related disbursements within a two-month span, specifically between May and June 2026. This discovery immediately sparks questions regarding the thoroughness of compliance and due diligence in the awarding and payment processes for public sector engagements.

An examination of payment data made public on Govspend revealed that Fairdeals Associates Limited, A.A.J. Global Resources Limited, E.O.G Global Services Limited, Ada Abdulrahman Global Investment Limited, and Legend Otolorin Construction Limited were among the entities listed as inactive on the CAC portal while simultaneously benefiting from substantial payments from various federal ministries, agencies, and institutions.

Delving into the records, Fairdeals Associates Limited was noted to have received three payments totalling N449.5 million from the Office of the Special Adviser to the President on Niger Delta within May and June 2026. A notable payment on June 19, 2026, was N339.03 million for a “conduct of capacity building training for 120 PAP stakeholders (batch 3)” which took place in Abuja from March 23 to April 10, 2026. On the same date, the company also secured N55.23 million for “stakeholder and strategic internal security engagement in the Niger Delta region (Bayelsa and Rivers States) for the month of May 2026.” An earlier payment on May 11 saw the company receive N55.23 million for similar “stakeholders and strategic internal security engagement for Niger Delta region (Bayelsa and Rivers) respectively under the PAP for the month of April 2026.”

Similarly, A.A.J. Global Resources Limited, also flagged as inactive by the CAC, received two federal payments amounting to N368.34 million in June. The Sokoto Rima River Basin Development Authority disbursed N259.29 million to the firm on June 18 for the “establishment and equipping of veterinary clinic/insemination centers within pastoralist communities in Sokoto State.” Concurrently, on the very same day, the Nigeria Immigration Service paid the company N109.04 million as a partial payment for the “construction and fencing (412m perimeter) of barracks for officers and men at Greater Port Harcourt, Rivers State.”

Another enterprise with an inactive status, E.O.G Global Services Limited, secured N132.95 million from the National Rural Electrification Agency on June 18. This payment was linked to the procurement and installation of 300/500 KVA transformers in the Surulere-Itire community in Lagos State, referencing contract REA/CP/2024/A092.

Ada Abdulrahman Global Investment Limited, also found to be inactive on the CAC portal, received a cumulative N866.72 million through three payments from the Federal Medical Centre, Kebbi State. These transactions included N162.99 million for the supply of hospital equipment and furniture, N399.47 million for infrastructure upgrades at Kalgo, and an additional N304.26 million also for infrastructure upgrade.

Rounding out the list, Legend Otolorin Construction Limited, also marked as inactive on the CAC portal, was paid N788.72 million across three federal institutions in May and June. The Energy Commission of Nigeria provided N136.29 million on June 18 as a 30 percent mobilization fee for the supply of 11 transformers for rural electrification within the Makurdi/Guma Federal Constituency in Benue State. On May 10, the Federal Ministry of Agriculture and Food Security paid N248.48 million, representing 30 percent of an approved sum of N917.92 million for constructing surface dressing at Biyak to Kadarko in Plateau State. Furthermore, the Federal Ministry of Works disbursed N403.95 million on May 9 as a partial payment, described as the first tranche, for the completion of the Sanusi Nasarawa Library Building in Kano State.

These combined payments bring the total value of transactions involving these five inactive companies to approximately N2.606 billion within the short two-month period. The findings raise serious questions about the consideration of these companies' corporate statuses during the procurement, contract award, mobilization, and payment stages, especially if their inactive status was visible on the CAC portal at the time of these financial dealings.

The CAC functions as Nigeria's official corporate registry, offering a public search service to verify a company's registration and other corporate details. It is important to note that an “inactive” status on the CAC portal does not inherently imply formal dissolution or removal from the register. Instead, it often indicates regulatory non-compliance, such as failures in filing annual returns. The CAC has previously clarified that failing to meet statutory requirements can lead to a company being listed as “inactive” online, and non-compliance with annual return obligations can result in penalties and the potential risk of being struck off the register. The commission has also stated that companies formally struck off are considered dissolved from the date of publication, and engaging in transactions with such entities is illegal.