Former presidential candidate of the Labour Party, Peter Obi, on April 18, 2026, in Nigeria, raised concerns over large deductions from the country’s federation revenue, saying about ₦34 trillion did not get to the Federation Account within three years based on data from the World Bank.
Obi said the figures show that although Nigeria generated about ₦84 trillion between 2023 and 2025, a large portion was removed before the funds were shared among the federal, state, and local governments. He noted that the amount deducted represents around 41 per cent of the total revenue within that period.
He pointed out that the value of the deductions is close to what the government planned to spend on capital projects in the 2024 and 2025 budgets combined, raising concerns about how public funds are managed. He said the situation reflects deeper problems in the country’s financial system and limits the ability of government to invest in sectors such as health, education, and infrastructure.
Data cited from the World Bank showed that federation revenue rose steadily from ₦17.08 trillion in 2023 to ₦29.45 trillion in 2024 and ₦37.44 trillion in 2025, bringing the total to about ₦83.97 trillion. However, deductions also increased within the same period, moving from ₦6.22 trillion in 2023 to ₦13.38 trillion in 2024 and ₦14.93 trillion in 2025, amounting to about ₦34.53 trillion overall.
The global institution warned that such deductions, often made at source for agencies, reduce the amount available for development spending by governments. Obi linked this trend to poor outcomes in key sectors, noting that countries with fewer resources are achieving better results.
He also drew attention to past cases of missing public funds, including findings from the 1994 Okigbo Panel, suggesting that the current situation raises similar concerns.
He called for reforms focused on transparency and accountability, stating that public resources should be properly managed and directed towards improving the lives of citizens.