Fake Agency Scandal: Reps Launch Probe Into ₦1.3bn Budget Allocation Amid Questions Over Federal Oversight

The House of Representatives has opened a far-reaching investigation into how more than ₦1.3 billion was allocated in the 2026 federal budget to an agency the Federal Government says was never legally established.

The decision follows growing controversy surrounding the Presidential Foreign Investment Promotion Council (PFIPC), an organization that allegedly operated as a government institution despite lacking any legal backing. Lawmakers say the development has exposed serious weaknesses in Nigeria’s budget preparation, verification and oversight systems.

House Constitutes Investigative Committee

The House constituted an ad hoc committee headed by the Chairman of the House Committee on Navy, Yusuf Gagdi, to determine how the purported agency secured a budget allocation despite questions over its legal status.

The committee has been directed to:

• Investigate how the agency was included in the 2026 Appropriation framework.
• Identify officials or institutions responsible for approving the allocation.
• Examine whether established budget verification procedures were ignored or manipulated.
• Recommend measures to prevent similar incidents in future federal budgets.

Alleged Agency Operated Without Legal Foundation

According to lawmakers, the Presidential Foreign Investment Promotion Council reportedly operated from the Federal Secretariat Complex in Abuja between November 2024 and October 2025, interacting with several government institutions as though it were an officially recognised federal agency.

However, investigations by the Federal Government indicate that no Act of the National Assembly created the council, and there is no legitimate legal instrument establishing it.

Lawmakers further alleged that the organization relied on documents referencing a non-existent section of Nigerian law, raising fresh concerns over forgery and impersonation.

₦1.3 Billion Budget Raises Fresh Questions

One of the biggest concerns before lawmakers is how an organization without legal recognition was reportedly allocated over ₦1.3 billion in public funds within the 2026 national budget.

Members of the House argue that only agencies established by law should receive appropriations from public funds.

The incident has triggered fears that similar irregularities could exist elsewhere within Nigeria’s budget system if proper verification procedures were bypassed.

Lawmakers described the situation as more than an administrative error, warning that it could expose deeper structural weaknesses in public financial management.

Criminal Proceedings Already Underway

The controversy is unfolding alongside ongoing legal proceedings involving the alleged Director-General of the council, Adeyemi Adeniyi, who faces allegations relating to forgery, impersonation and fraudulent representation.

The Presidency has distanced itself from the organization, insisting the council was never created by the Federal Government and describing its activities as fraudulent.

The House clarified that its investigation is intended to strengthen legislative oversight and will not interfere with the ongoing court proceedings.

Presidency Orders Separate Investigation

The controversy has also drawn the attention of the Presidency.

President Bola Tinubu recently directed the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to conduct a comprehensive investigation into the activities of the alleged agency and submit its findings within 30 days.

The investigation is expected to determine how forged documents were allegedly used, whether public funds were accessed, and how the organization gained credibility within government institutions.

Wider Implications

The scandal has reignited national debate over transparency, accountability and institutional checks within Nigeria’s budgeting process.

Analysts say the outcome of the House investigation could lead to tighter verification requirements for ministries, departments and agencies seeking budget allocations, while also prompting broader reforms aimed at protecting public funds from abuse.