Former Labour Party presidential candidate Peter Obi has voiced concern over what he described as significant revenue leakages in Nigeria’s public finances, referencing findings that trillions of naira failed to reach the Federation Account over a three-year period.
In a statement released on Saturday, Obi said it is worrying that although total federation revenue rose to about ₦84 trillion within the period, roughly 41 percent—amounting to over ₦34 trillion—was deducted before funds were distributed to federal, state, and local governments.
He stressed that the figure surpasses the combined capital expenditure allocations in the 2024 and 2025 national budgets, warning that such a gap points to deep-rooted systemic issues rather than minor administrative lapses.
Describing the situation as alarming, Obi argued that the country appears to be generating more income while having fewer resources available for essential sectors like healthcare, education, and infrastructure.
Data referenced from the World Bank indicates that Nigeria’s revenue increased steadily from 2023 to 2025, but deductions also rose sharply during the same period, significantly reducing the funds available for development.
The global institution had earlier cautioned that these upfront deductions—often allocated to specific agencies—are gradually shrinking the financial capacity of governments at all levels.
Obi linked the trend to Nigeria’s development challenges, stating that such financial inefficiencies could explain why countries with fewer resources are making greater progress across key sectors.
He questioned how meaningful development could be achieved under such conditions, noting that issues like power supply, education, healthcare, and infrastructure remain underfunded despite rising revenues.
Drawing a parallel with past concerns, he referenced the findings of the Okigbo Panel in the 1990s, suggesting that the current situation may be even more severe if left unchecked.
The former governor called for urgent reforms, urging leaders to prioritise transparency, accountability, and disciplined management of public resources to redirect funds toward national development.