Former Labour Party presidential candidate, Peter Obi, has raised alarm over what he described as huge revenue leakages in Nigeria’s public finance system, citing a World Bank report that revealed about ₦34 trillion in federation revenue was deducted before reaching the Federation Account over a three-year period.
In a statement issued on Saturday, Obi described the development as deeply disturbing, noting that although the country generated approximately ₦84 trillion in revenue within the period under review, nearly 41 percent of that amount estimated at ₦34.44 trillion was not remitted into the Federation Account.
According to him, the figure is almost equal to the combined ₦34 trillion allocated for capital expenditure in both the 2024 and 2025 national budgets, a situation he said exposes the severity of the issue.
Obi argued that the scale of the deductions suggests more than an administrative lapse, describing it instead as evidence of entrenched corruption within the system.
He further lamented what he called a dangerous contradiction in Nigeria’s economy, stating that despite rising national earnings, the country continues to struggle to invest adequately in essential sectors such as healthcare, education, and infrastructure.
Data referenced from the World Bank’s Nigeria Development Update showed that federation revenue increased significantly over the three years, rising from ₦17.08 trillion in 2023 to ₦29.45 trillion in 2024, and further to ₦37.44 trillion in 2025, bringing the total to ₦83.97 trillion.
However, deductions made at source also surged during the same period, climbing from ₦6.22 trillion in 2023 to ₦13.38 trillion in 2024, and ₦14.93 trillion in 2025. This brought the total deductions to ₦34.53 trillion, representing about 41 percent of total earnings before funds were shared among the federal, state, and local governments.
The World Bank warned that such direct deductions continue to reduce the amount available for developmental spending, as funds are allocated to certain agencies before entering the Federation Account.
Reacting to the trend, Obi said the leakages help explain why Nigeria continues to lag behind countries with fewer resources in key development indicators.
He questioned how the country could make progress in power supply, education, healthcare, and infrastructure development under what he described as a broken financial system, insisting that Nigeria should not be a poor nation given its revenue potential.
Drawing parallels with history, the former Anambra governor referenced the 1994 Okigbo Panel report, which uncovered $12.4 billion in missing oil windfall revenue, warning that the current situation may be even more troubling.
He therefore called for immediate reforms, urging transparent and disciplined leadership to block revenue leakages and ensure that national resources are redirected toward improving the lives of citizens.