Agbakoba: Nigeria Losing Up to N20trn Annually to Revenue Leakages

Nigeria is grappling with a staggering annual revenue loss, potentially reaching N20 trillion, due to persistent systemic leakages. A critical policy paper released by Olisa Agbakoba Legal (OAL) points to a fundamental constitutional failure: the non-implementation of Section 162(1) of the 1999 Constitution, which mandates that all government revenues be deposited into the Federation Account. This "revenue paradox," where earnings rise but fiscal outcomes worsen, is a stark indicator of deep-seated economic mismanagement. The report highlights that despite increased federation revenues, Nigeria's public debt has ballooned, with debt servicing consuming an unsustainable portion of federal income. The Nigerian National Petroleum Company Limited (NNPCL) is singled out as a major culprit, with allegations of under-remittance and a lack of transparency in its operations. The inherent conflict of interest, with NNPCL acting as producer, seller, cost calculator, and remitter, cripples accountability. Furthermore, the paper exposes the alarming practice of crude-for-loan arrangements, where significant oil production is committed to servicing external debts, often bypassing the Federation Account entirely and lacking legislative oversight. From a Nigerian perspective, these revelations underscore the urgent need for constitutional reform and robust fiscal accountability mechanisms to plug these leaks and ensure that national resources benefit the populace, rather than disappearing into opaque financial channels.

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Nigeria may be losing as much as N20 trillion annually to systemic revenue leakages