Peter Obi has voiced fresh concerns over Nigeria’s public finances, pointing to large-scale deductions from federation revenue that he says are undermining development.
Speaking on Saturday, Obi referenced data linked to the World Bank, noting that while the country generated close to ₦84 trillion between 2023 and 2025, about ₦34 trillion roughly 41 percent was removed before the funds reached the Federation Account for distribution.
He described the situation as disturbing, stressing that the deducted amount rivals what the government planned to spend on capital projects across the 2024 and 2025 budgets combined. According to him, the scale of the shortfall suggests deeper systemic problems rather than routine financial adjustments.
Obi said the trend exposes a contradiction in Nigeria’s economy, where increasing revenues have not translated into better investment in essential sectors like healthcare, education, and infrastructure.
Figures show that earnings rose significantly over the three year period from ₦17.08 trillion in 2023 to ₦29.45 trillion in 2024, and ₦37.44 trillion in 2025. However, deductions also climbed sharply within the same timeframe, reaching a total of about ₦34.53 trillion before allocation to the federal, state, and local governments.
The World Bank has warned that such upfront deductions, often used to fund certain agencies, are gradually shrinking the pool of resources available for public spending and development efforts.
Obi argued that this pattern allows some institutions to retain more funds than entire states or key ministries, weakening the government’s ability to address critical needs. He questioned how meaningful progress can be achieved in sectors like power, education, and healthcare under such conditions.
Drawing a historical parallel, he referenced the 1994 Okigbo Panel Report, which uncovered billions in unaccounted oil revenue, suggesting that current developments may reflect an even more serious issue.
He called for urgent corrective measures, emphasising the need for transparency, accountability, and disciplined leadership to curb leakages and ensure public funds are properly channelled toward national development.
