Former presidential candidate of the Labour Party, Peter Obi, has expressed concern over what he described as massive revenue leakages, citing World Bank findings that about ₦34 trillion in federation revenue did not reach the Federation Account within three years.
In a statement on Saturday, Obi said it was “deeply troubling” that while Nigeria’s federation revenue rose to about ₦84 trillion within the period, “a staggering 41 per cent — amounting to ₦34.44 trillion — never reached the Federation Account.”
“This sum exceeds the combined ₦34 trillion earmarked for capital projects in the 2024 and 2025 Appropriation Bills, a comparison that underscores the gravity of the situation and signals that something is fundamentally wrong. This is not a mere oversight; it points to institutionalised corruption on a massive scale,” he said.
Obi said the development highlights a broader paradox in the country’s public finance, noting, “We are trapped in a lethal paradox: earning more as a nation, yet having less to invest in healthcare, education, and infrastructure.”
PUNCH Online had reported that data from the World Bank showed that Nigeria’s federation revenues rose from ₦17.08 trillion in 2023 to ₦29.45 trillion in 2024 and ₦37.44 trillion in 2025, bringing total earnings to ₦83.97 trillion over the three years.
However, deductions from the Federation Account also increased sharply—from ₦6.22 trillion in 2023 to ₦13.38 trillion in 2024 and ₦14.93 trillion in 2025—amounting to ₦34.53 trillion, or about 41 per cent of total revenue, before distribution to the federal, state and local governments.
The World Bank, in its Nigeria Development Update, warned that such deductions are “quietly eroding” funds available to governments, as allocations to key agencies are made at source, shrinking the fiscal space for development.
Linking the trend to national outcomes, Obi said, “From 2025, systemic ‘deductions’ have allowed agencies to capture more resources than entire states and even critical ministries. These leakages explain why countries with fewer resources are outperforming us across key development indices.”
“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,” he added.
Drawing a historical comparison, he recalled the 1994 Okigbo Panel Report, which identified $12.4 billion in unaccounted oil windfall, noting that a more troubling situation now appears to be unfolding with little public reaction.
The former Anambra State governor called for urgent reforms, saying, “We must stop these leakages through disciplined, transparent leadership driven by character. 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.”
