Senior Advocate of Nigeria and former NBA President Dr. Olisa Agbakoba says Nigeria may be losing up to ₦20 trillion every year through structural leakages in public finance, warning of a looming fiscal collapse.
Speaking on “Frontline” on Eagle 102.5 FM, Agbakoba said the country’s continues borrowing despite having significant revenue streams ppoits to deep failures in revenue consolidation and management.
He cited Section 162 of the constitution, which requires all government revenue to be paid into the Federation Account without deduction.
In practice, he said, agencies run parallel financial practices that keep money out of the account. He named NNPC as a “terrible culprit,” referencing the sacking of the Mele Kyari board and ongoing EFCC charges against an NNPC director over ₦80bn found in his account.
Agbakoba estimated leakages at ₦20 trillion annually, double the World Bank’s ₦10 trillion estimate.
He said Nigeria is operating at up to 60% below its actual revenue potential due to weak fiscal management.
He pointed to “forward crude sales” under projects like Gazelle, Yield, Leopard, and Eagle Export Funding, where future crude production is sold in advance for immediate cash.
He also questioned spending on refinery rehabilitation in Port Harcourt, Warri, and Kaduna, saying the facilities remain non-functional despite large outlays.
Nigeria’s debt now stands at about ₦160 trillion, yet borrowing continues. Agbakoba argued this is like a household borrowing while having enough in its account, and blamed failure to consolidate and manage revenue properly.
He supported subsidy removal and FX reform but criticized the lack of mitigation. He said savings should have gone into a dedicated infrastructure fund instead of being distributed to states with weak accountability.
Agbakoba said most office holders are focused on the 2027 elections rather than governance, which weakens accountability and allows leakages to persist. He called for revenue leakage to become a central issue in the 2027 election.
Without deep reforms in revenue collection, oversight, and expenditure management, Nigeria will remain trapped in cycles of borrowing and underdevelopment despite rising earnings.
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