Obi alleges N34tn revenue leakages, demands urgent reforms

Peter Obi, forrmer presidential candidate, has raised alarm over what he described as massive revenue leakages in Nigeria, citing findings by the World Bank that about N34 trillion in federation revenue failed to reach the Federation Account over a three-year period.

In a statement on Saturday, Obi said it was “deeply troubling” that although the country generated about N84 trillion between 2023 and 2025, a significant portion, approximately 41% or N34.44 trillion, was deducted before remittance.

“This sum exceeds the combined N34 trillion allocated to capital projects in the 2024 and 2025 Appropriation Acts. It underscores the gravity of the situation and suggests that something is fundamentally wrong. This is not a mere oversight; it points to institutionalised corruption on a massive scale,” he said.

Obi noted that the development reflects a disturbing contradiction in Nigeria’s public finance system.
“We are trapped in a lethal paradox earning more as a nation, yet having less to invest in critical sectors such as healthcare, education and infrastructure,” he added.

According to data from the World Bank’s Nigeria Development Update, federation revenues rose from N17.08 trillion in 2023 to N29.45 trillion in 2024, and further to N37.44 trillion in 2025, bringing total earnings to N83.97 trillion within the period.

However, deductions from the Federation Account also surged from N6.22 trillion in 2023 to N13.38 trillion in 2024, and N14.93 trillion in 2025, amounting to N34.53 trillion, or about 41% of total revenue before distribution to the federal, state and local governments.

The World Bank warned that such deductions are “quietly eroding” funds available for development, as allocations to certain agencies are made at source, thereby shrinking the fiscal space available to governments.

Linking the trend to national development outcomes, Obi said, “From 2025, systemic deductions have allowed agencies to capture more resources than entire states and even key ministries. These leakages help explain why countries with fewer resources are outperforming Nigeria on critical development indicators.

“With such a broken system, how can we fix power, strengthen education, build a resilient healthcare system, or develop critical infrastructure? Nigeria has no business being poor,” he said.

Obi referenced the Okigbo Panel Report, which uncovered $12.4 billion in unaccounted oil revenue, warning that a more severe situation may now be unfolding with limited public scrutiny.

He called for urgent reforms, stressing the need for transparency and accountability.

“We must halt these leakages through disciplined and transparent leadership driven by integrity. It is time to return our hijacked resources to the people and reposition Nigeria for sustainable development. With collective resolve, a new Nigeria is possible,” Obi said.