Former presidential candidate of the Labour Party, Peter Obi, has raised concern over what he described as huge revenue leakages, citing World Bank data showing that about ₦34 trillion in federation revenue failed to get into the Federation Account within three years.
In a statement on Saturday, Obi said it was “deeply troubling” that although 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.”
He noted that the figure is higher than the combined ₦34 trillion allocated for capital projects in the 2024 and 2025 Appropriation Bills, adding that this highlights a serious concern in public finance management. He said, “This is not a mere oversight; it points to institutionalised corruption on a massive scale.”
Obi further explained that the situation reflects a troubling contradiction in the country’s finances, stating, “We are trapped in a lethal paradox: earning more as a nation, yet having less to invest in healthcare, education, and infrastructure.”
PUNCH Online reported that World Bank data showed Nigeria’s federation revenue increased 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 year period.
However, deductions from the Federation Account also rose significantly, from ₦6.22 trillion in 2023 to ₦13.38 trillion in 2024 and ₦14.93 trillion in 2025, totalling ₦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 gradually reducing funds available to governments, as allocations to key agencies are made at source, thereby limiting fiscal space for development.
Obi also linked the trend to national development challenges, stating that “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.”
He added, “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.”
Recalling past concerns, he referenced the 1994 Okigbo Panel Report, which identified $12.4 billion in unaccounted oil windfall, warning that the current situation appears even more worrying with little public accountability.
The former Anambra State governor called for urgent reforms, stating, “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.”