Minister Umahi Faces Probe Over N60bn Contracts to Loyalist Firm, BusinessDay Investigates

BusinessDay Nigeria's investigation reveals that a company linked to David Umahi, Nigeria's Minister of Works, received N60.1 billion in federal contracts over two years, raising concerns about procurement law violations and potential conflicts of interest.

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Nyakundi Report

Newsroom 6 min read

Primary source BusinessDay Nigeria

BusinessDay Nigeria's investigation reveals that a company linked to David Umahi, Nigeria's Minister of Works, received N60.1 billion in federal contracts over two years, raising concerns about procurement law violations and potential conflicts of interest. The firm, Reinforced Global Resources Limited, was established in 2011 and began securing government contracts only after Umahi's appointment to the ministry in 2024, according to findings by the outlet's investigative team. The payments, totaling N60,078,385,317.43 across 27 transactions between 2024 and 2026, were exclusively directed to the company by the Federal Ministry of Works, with no prior federal contracts recorded in its history before 2024.

The investigation highlights a series of large-scale payments for infrastructure projects, including the construction of the Enugu-Abakaliki-Ogoja Road, the Ugep-Abaomoge-Opkosi Road, and a flyover bridge at Eke Obinagu Junction. These projects received N30.06 billion, N15.72 billion, and N8.34 billion respectively, with the majority of funds disbursed in advance before project milestones were met. The payments, which exceeded legal limits under Nigeria's Public Procurement Act 2007, have drawn scrutiny from procurement experts and civil society groups.

Joshua Okoro, the managing director of Reinforced Global Resources Limited, was a key figure in Umahi's political campaigns. As chairman of the National Association of Nigerian Students (NANS) Stakeholders Forum in Ebonyi State, Okoro actively promoted Umahi's 2023 senatorial bid, urging students to support the then-governor. After Umahi's election to the Senate, he resigned and was appointed minister of works, a role that coincided with the company's sudden influx of federal contracts. Okoro's political ties to Umahi, including his role as a former campaigner, have raised questions about the legitimacy of the contracts awarded to his firm.

The Public Procurement Act 2007 mandates that companies receiving government contracts disclose any financial or personal relationships with ministry officials. Okoro's public advocacy for Umahi, including his leadership in the NANS Stakeholders Forum, should have triggered a mandatory disclosure under the law. Failure to disclose such relationships could result in disqualification of the company or the minister's recusal from the procurement process. However, no such disclosures were made, according to BusinessDay's findings.

Reinforced Global Resources Limited's history reveals a pattern of rapid growth tied to Umahi's political career. The company, which started with only three permanent staff and 28 contractual workers in 2011, secured its first major government contract in 2016 when Umahi was governor of Ebonyi State. This included the Abakaliki Ring Road project, funded through federal loans. The firm also executed drainage and earthworks for the School of Nursing in Uburu, a project under Umahi's administration.

The company's ties to Umahi extend beyond state contracts. In 2023, the Economic and Financial Crimes Commission (EFCC) charged Egwuche Gladys, Group Managing Director of Brass Engineering and Construction Nigeria Limited, with money laundering. The case involved a $600,000 cash transaction for a granite stone crushing line, with Reinforced Global Resources Limited named as a joint-venture buyer. Brass Engineering, founded by Umahi in 2003, was dissolved in 2011, the same year Reinforced Global Resources was established.

BusinessDay's investigation also uncovered irregularities in the Enugu-Abakaliki-Ogoja Road project, where 42% of the total contract value was paid in advance before progress certificates were issued. This practice violates Section 35 of the Public Procurement Act, which limits initial payments to 15% of the contract value and requires performance guarantees. The rapid disbursement of funds has sparked concerns about the project's quality and safety, with local reports citing incomplete work and structural issues.

Procurement expert Lukman Adefolahan criticized the arrangement, stating that the advance payments to Reinforced Global Resources violated both the Public Procurement Act and the Fiscal Responsibility Act. He emphasized that the law prohibits advance payments exceeding 15% unless in emergencies, and the repeated disbursements in this case constituted a clear breach. Adefolahan also called for greater transparency in public procurement, urging the government to adopt technology to minimize human interference in contract awards.

The Ministry of Works has not responded to BusinessDay's requests for clarification on how Reinforced Global Resources secured the contracts. The outlet sent a right-of-reply email to the ministry on August 24, 2026, but received no response. Similarly, Reinforced Global Resources Limited has not provided any official statement, with attempts to contact the company via its listed numbers proving unsuccessful.

The case has reignited debates about accountability in Nigeria's public procurement system. Civil society organizations have called for stricter enforcement of procurement laws and increased public oversight. The lack of transparency in the contracts has raised fears of systemic corruption, particularly in sectors with high contract volumes like infrastructure development.

Reinforced Global Resources Limited's ownership structure includes Joshua Okoro with 40% shares, and Akpa Ejimkonye and Akpa Hannah each holding 30%. Okoro's career trajectory, from mason to contractor, underscores the company's rapid rise, which coincided with Umahi's political ascent. His leadership in student organizations and political campaigns further complicates the narrative of impartiality in the procurement process.

The EFCC's ongoing case against Brass Engineering, which Umahi founded and chaired until 2011, adds another layer of scrutiny. The firm's involvement in the $600,000 cash transaction highlights potential links between Umahi's business interests and the current contracts awarded to his associates. This has led to calls for a comprehensive review of Umahi's financial and business relationships.

Public interest groups have emphasized the need for independent audits of the contracts awarded to Reinforced Global Resources. They argue that the lack of competitive bidding and the absence of third-party oversight raise serious questions about the integrity of the procurement process. The case also underscores the challenges of enforcing procurement laws in a political environment where personal connections often override legal requirements.

The investigation has prompted discussions about the role of political loyalty in public contracting. Critics argue that the sudden influx of contracts to a firm linked to a sitting minister undermines public trust in government institutions. The situation highlights the urgent need for reforms to ensure that public resources are allocated based on merit and transparency, rather than political favoritism.

BusinessDay's findings have sparked a broader conversation about the intersection of politics and public procurement in Nigeria. The case of Reinforced Global Resources Limited serves as a cautionary tale about the risks of unchecked political influence in government contracts. As the investigation continues, stakeholders are calling for accountability and a recommitment to the principles of good governance.

The lack of response from the Ministry of Works and Reinforced Global Resources Limited has deepened concerns about the opacity of the procurement process. Without transparency, the public remains in the dark about the legitimacy of the contracts and the potential misuse of public funds. This case underscores the importance of independent journalism in holding power to account.

The revelations about the N60.1 billion contracts have intensified pressure on the government to address systemic issues in public procurement. Civil society, legal experts, and the media are urging the administration to implement stricter oversight mechanisms and ensure that all contracts comply with the law. The outcome of this investigation could set a precedent for future procurement practices in Nigeria.

The ongoing scrutiny of Umahi's tenure as minister of works highlights the challenges of balancing political loyalty with legal compliance. As the investigation unfolds, the public awaits further clarity on the circumstances surrounding the contracts and the steps being taken to address any violations of procurement laws.

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