Former Labour Party presidential candidate, Peter Obi, has raised concerns over what he described as massive revenue leakages, citing findings that about ₦34 trillion failed to reach Nigeria’s Federation Account within three years.
Mr Obi, in a statement issued on Saturday, described the development as “deeply troubling,” noting that although Nigeria generated about ₦84 trillion in federation revenue over the period, a significant portion was unaccounted for.
“A staggering 41 per cent — amounting to ₦34.44 trillion — never reached the Federation Account,” he said.
“This sum exceeds the combined ₦34 trillion earmarked for capital projects in the 2024 and 2025 Appropriation Bills… This is not a mere oversight; it points to institutionalised corruption on a massive scale.”
World Bank findings
The concerns follow insights from the World Bank, which warned in its Nigeria Development Update that deductions at source are reducing funds available to governments.
According to the report, Nigeria’s federation revenue rose from ₦17.08 trillion in 2023 to ₦29.45 trillion in 2024 and ₦37.44 trillion in 2025, totalling ₦83.97 trillion.
However, deductions also surged from ₦6.22 trillion in 2023 to ₦13.38 trillion in 2024 and ₦14.93 trillion in 2025—bringing total deductions to about ₦34.53 trillion, or roughly 41 per cent of total revenue.
Economic paradox
Mr Obi said the situation reflects a deeper structural problem in Nigeria’s public finance system.
“We are trapped in a lethal paradox: earning more as a nation, yet having less to invest in healthcare, education, and infrastructure,” he said.
He added that such leakages explain why countries with fewer resources are outperforming Nigeria on key development indicators.
“With such a broken system, how can we fix power, strengthen our schools, build resilient healthcare, or develop critical infrastructure? Nigeria has no business being poor.”
Historical comparison
Drawing parallels with past financial controversies, Mr Obi referenced the Okigbo Panel Report, which uncovered billions in unaccounted oil revenue.
He warned that the current situation could be even more concerning, given the scale and limited public scrutiny.
Mr Obi called for urgent reforms to address what he described as systemic inefficiencies and corruption.
“We must stop these leakages through disciplined, transparent leadership driven by character,” he said.
“It is time to redirect our hijacked resources back to the people and move Nigeria into the league of developed nations… With our collective resolve to change this corruption-infested system, a New Nigeria is possible.”
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