Former NBA President says Nigeria may be bleeding trillions through revenue leakages and weak remittances
Former President of the Nigerian Bar Association, Olisa Agbakoba, has raised fresh alarm over Nigeria’s worsening fiscal condition, warning that the country’s Federation Account is facing serious pressure amid rising debt and revenue leakages.
Speaking during a policy presentation in Lagos, Agbakoba faulted what he described as massive deductions and under-remittances affecting funds meant for the Federation Account. According to him, Nigeria’s financial crisis is being driven more by weak institutional practices and constitutional violations than by lack of resources.
The senior lawyer argued that the continued confusion between the Federation Account and the Treasury Single Account has weakened transparency within Nigeria’s public finance system. He stressed that Section 162(1) of the Constitution clearly requires all federally generated revenue to be paid into the Federation Account before disbursement.
Agbakoba’s comments come at a time concerns are mounting over Nigeria’s rising debt servicing obligations. President Bola Ahmed Tinubu recently acknowledged that debt servicing costs are consuming a huge portion of government revenue, limiting spending on critical sectors such as healthcare, infrastructure, and education.
According to Agbakoba, Nigeria may be losing as much as N20 trillion yearly through revenue leakages and deductions occurring outside the constitutional framework. He warned that unless urgent reforms are implemented, fiscal instability could deepen across all tiers of government.
His remarks have already sparked intense debate among economic experts and political observers, especially as Nigerians continue to grapple with inflation, rising living costs, and economic uncertainty under ongoing reforms.