Former President of the Nigerian Bar Association, Dr. Olisa Agbakoba SAN, has warned that Nigeria may be losing as much as ₦20 trillion every year through leakages in public finance, opaque oil deals and weak fiscal control.
He made the claim during an interview on Frontline, a current affairs programme on Eagle 102.5 FM, where he said the country’s borrowing burden is growing because revenues are not being managed properly.
Agbakoba said the problem runs deep and starts with the way public funds are handled across agencies. He pointed to Section 162 of the 1999 Constitution, which says federation revenues should go into a central account before deductions.
“The Federation of Nigeria has a constitutional account into which all revenues are supposed to be paid without deductions, but the reality today is completely different,” he said.
He said that gap has helped create a system where several institutions operate financial structures that weaken remittances into the Federation Account.
Oil Revenue And Debt Pressure
The senior lawyer said the Nigerian National Petroleum Company Limited sits at the centre of the crisis because of deductions, opaque financing, and other payment structures that reduce the amount that enters government coffers.
He linked the problem to Nigeria’s rising debt profile, saying the country should not be borrowing so heavily if revenues were being properly managed.
“Nigeria should not be borrowing at the level it is borrowing today if our revenues are properly managed,” he stated.
He added that debt service now eats up most government earnings.
“If we earn 100 Naira, we first have to remove about 70 Naira to service debt obligations,” he said.
“That leaves very little for infrastructure, healthcare, education, salaries and other constitutional responsibilities of government.”
Agbakoba also said the dissolution of the former NNPCL board headed by Mele Kyari showed that the federal government itself understood the depth of the problem in the oil sector.
Meanwhile, he said the probe of some oil company officials supports long-running concerns about accountability and leakages in the system.
Refineries And Future Deals
Agbakoba criticised repeated spending on refinery rehabilitation in Port Harcourt, Warri and Kaduna, saying the results have remained poor.
He said it makes no economic sense for Nigeria to keep exporting crude and importing refined fuel, especially after huge public spending on the refineries.
“The refineries are still not functioning effectively despite huge investments. Without the Dangote Refinery, Nigeria would still be trapped in the endless cycle of fuel importation,” he said.
He also warned against crude-backed financing deals tied to future output. He listed Project Gazelle, Project Yield, Project Leopard and Eagle Export Funding as examples of arrangements that trade future production for immediate cash.
He said such deals weaken future earnings and place more pressure on Nigeria’s long-term finances.
He further said revenue losses also affect petroleum profit tax, royalties, signature bonuses, gas penalties, company income tax, stamp duties and solid mineral income.
Agbakoba argued that subsidy removal and exchange rate liberalisation were necessary, but said the government failed to put strong protection in place for citizens.
He said the subsidy savings should have gone into a dedicated infrastructure fund instead of being distributed to states without enough accountability.
“Virtually all office holders are more interested in 2027 than governance,” he said.
He added that Nigeria has enough resources to meet its public duties, but lacks the discipline and control needed to turn those resources into real development.
Rate, Like 👍, Comment 💬, Share this article, Follow us on our social media handles, and Submit your own story to get featured and earn rewards!
WhatsApp Channel
Telegram Channel
