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PFIPC scandal: Babachir Lawal alleges ‘big racket’ behind disputed agency

Former Secretary to the Government of the Federation, Babachir Lawal, has called for a judicial inquiry into the controversy surrounding the alleged Presidential Fiscal and Infrastructure Projects Council, saying the matter points to wider institutional failures and possible collusion within government.

Speaking during an interview with ARISE NEWS on Monday, Lawal argued that the issue should not be dismissed as a mere administrative lapse, insisting that a judicial probe is necessary to uncover everyone involved.

The Punch reported that the former SGF questioned how the alleged agency reportedly obtained a budget code and navigated government processes despite doubts over its legal status.

“I don’t think it should even be administrative alone; it should be a judicial inquiry,” Lawal said.

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He also challenged claims that the alleged agency received a ₦27.5bn take-off grant before the controversy over the alleged ₦1.3bn budget insertion surfaced publicly.

Lawal maintained that Nigerians should pay attention not only to the disputed budget insertion but also to how such a significant amount was allegedly released to an agency whose legal standing remains uncertain.

“Who gave him the money? It was not appropriated for; it’s not in any budget, that N27.5bn Naira for which he says somebody demanded 48%. Who gave him the money?” he asked.

According to him, the controversy only came to light because of disagreements over the alleged distribution of funds rather than the effectiveness of government oversight mechanisms.

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“We are just talking about the tip of the iceberg here. Down there, before we got to here, N27.5bn had already been disbursed, according to him, as a take-off grant,” he said.

Lawal described the development as evidence of institutional compromise, suggesting that officials within government may have worked together to facilitate the alleged operations of the agency.

“It’s institutional compromise, because in this, I sense there’s quite a big racket going on somewhere along the line,” he said.

He further questioned how the Budget Office could have assigned a budget code to an agency that allegedly lacked legal recognition.

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“How did they manage to assign the budget code for this agency that does not exist? Who inserted it?” Lawal asked.

The former SGF argued that the irregularity should have been detected during the budget preparation process before the proposal reached the National Assembly.

He said the Office of the Secretary to the Government of the Federation had a responsibility to identify and flag any agency without a proper legal foundation before its budget advanced through official channels.

“Unless there’s a dereliction of duty by the SGF’s office, the responsibility to flag that this is a fake agency would have come from them,” he said.

Lawal also criticised the National Assembly, accusing lawmakers of failing to thoroughly examine budget proposals presented to them.

“This National Assembly has no interest in scrutinising the budget that comes before them,” he said.

He urged Nigerians to focus on those who allegedly facilitated the agency’s activities rather than limiting the debate to whether the agency legally existed.

According to him, influential individuals may have played key roles in enabling the agency’s operations and should be identified through a comprehensive investigation.

The PFIPC controversy has continued to fuel concerns over the integrity of Nigeria’s budget process, institutional accountability and the role of officials alleged to have permitted the disputed agency to function within government structures.

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