Former Labour Party presidential candidate Peter Obi has raised alarm over significant revenue losses in Nigeria’s public finances, pointing to findings by the World Bank that an estimated ₦34 trillion failed to reach the Federation Account over a three-year period.
In a statement issued Saturday, Obi described the situation as “deeply troubling,” noting that although total federation revenue climbed to about ₦84 trillion within the timeframe, “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.
According to data cited from the World Bank, Nigeria’s federation revenue increased steadily from ₦17.08 trillion in 2023 to ₦29.45 trillion in 2024, and further to ₦37.44 trillion in 2025, bringing the cumulative total to ₦83.97 trillion.
However, deductions made at source also rose significantly over the same period—moving from ₦6.22 trillion in 2023 to ₦13.38 trillion in 2024 and ₦14.93 trillion in 2025—resulting in ₦34.53 trillion, or about 41 per cent of total revenue, being withheld before distribution to federal, state, and local governments.
The World Bank, in its Nigeria Development Update, cautioned that such deductions are “quietly eroding” funds meant for government use, as allocations to certain agencies are taken upfront, thereby limiting resources available for development.
Obi linked the issue to broader economic challenges, saying, “We are trapped in a lethal paradox: earning more as a nation, yet having less to invest in healthcare, education, and infrastructure.”
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He further warned, “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 parallels with the past, Obi referenced the 1994 Okigbo Panel Report, which uncovered $12.4 billion in missing oil windfall revenue, suggesting that the current situation may be even more alarming, despite limited public outcry.
He called for immediate corrective measures, stressing, “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.”