The Federal Ministry of Water Resources and Sanitation has clarified that the delay in the planned auction of government assets across various project sites nationwide are due to procedural requirements that must be fulfilled before the disposal process can proceed.

The response came amid allegations that millions of naira worth of assets are deteriorating as a result of the prolonged delay. Also, the ministry denied claims of mismanagement, insisting that the process is being carefully managed to ensure transparency and compliance with government regulations.

Mostly unserviceable earth-moving machines, heavy-duty equipment and industrial components, the items in question are scattered across major water infrastructure projects, including the Gurara Dam in Niger State and the Upper and Lower Benue River Basin projects in Doma, Nasarawa.

Last August, the ministry, through a public notice signed by the Chairman, Board of Scraps and Unserviceable Items Committee, Moses Jo-Madugu, had announced plans to auction the obsolete assets to recover value for the government. But over two months later, the exercise has yet to commence, prompting criticism from the Nigeria Association of Auctioneers (NAA) and other stakeholders.

President of NAA, Musa Kurra, had  accused the ministry of failing to follow due process in line with the Public Procurement Act and the Proceeds of Crime (Recovery and Management) Act (POCA) 2023.

“Since the advertorial was published on August 20, 2025, nothing has been heard. There was no invitation for auctioneers to apply, no follow-up announcements for dates or locations of sales. The entire process has been left in limbo,” Kurra said.

He further alleged that some officials might be conducting informal site inspections with private contractors rather than engaging licensed auctioneers as required by law.

“Government can recover significant funds from these assets, but delays and secrecy are hindering that process. It’s unacceptable,” he stated.

Kurra emphasised that the NAA’s concerns were not driven by commercial interest but by the need for transparency and adherence to statutory provisions. “Every disposal of public assets must be done through licensed professionals to ensure accountability,” he added.

But the ministry described the allegations as “misleading, incomplete, and not reflective of the true situation.” The ministry’s Director of Press and Public Relations, Mrs Funmi Imuetinyan, explained that the auction had not been stalled, but temporarily deferred to allow for a “comprehensive audit and verification of all unserviceable equipment across its project sites n denied abandoning any of its assets, adding, “We are undertaking a detailed audit in line with the relevant laws, which require documentation, valuation and approval before any public asset disposal can take place.”

According to Imuetinyan, the deferment is to ensure due diligence, transparency and compliance with the guidelines of the Bureau of Public Procurement (BPP) and the Office of the Accountant-General of the Federation.

“The claims of conflict of interest among officials are unfounded and baseless,” the ministry asserted, adding that its Board of Scraps and Unserviceable Items Committee was working closely with regulatory bodies to harmonise valuation reports and obtain the necessary approvals.

On the role of professional auctioneers, the ministry assured that “recognised and duly registered auctioneers will be fully involved at the appropriate stage.” It also promised to issue a fresh public notice in due course detailing modalities, dates and approved auctioneers for the sale.

“The ministry reiterates its commitment to accountability, transparency and value-for-money in all its operations,” the statement added, urging the public to disregard speculative reports suggesting secrecy or mismanagement.

While the ministry insists the delay is procedural, auctioneers note that prolonged inaction could further diminish the value of the aging machinery.