Michael Olugbode, representing ActionAid Nigeria in Abuja, demanded an immediate forensic audit of the country's revenue management after data showed more than N34 trillion was removed from federal earnings before distribution to the federal, state and local tiers. The organisation noted that the deductions amount to over 40 percent of recent federal revenue, signalling deep flaws in public financial management and threatening fiscal stability.
ActionAid cited World Bank findings that a sizable share of government income is captured through pre‑distribution charges, cost‑of‑collection frameworks and agency remittances, with little clarity on their composition or use. "These findings reinforce long‑standing concerns about Nigeria's widening fiscal constraints and rising debt burden," the group said, adding that "the persistence of large‑scale revenue leakages represents both a governance failure and a missed opportunity to strengthen fiscal stability."
The deductions, estimated at more than N34 trillion, have risen alongside overall revenues, shrinking the resources available for public services. IMF projections indicate the debt‑to‑GDP ratio could reach 33.1 percent by 2027. "The widening gap between gross revenue and distributable income is constraining development financing and increasing dependence on debt," ActionAid warned.
Country Director Andrew Mamedu said the fallout is already being felt by millions. "For citizens grappling with rising inflation, declining purchasing power and economic hardship, the continued reduction in available public resources means fewer investments in essential services," he said, noting that weakened fiscal capacity also fuels insecurity. The group also criticised the lack of transparency around major expenditures such as the Nigeria Revenue Service building, urging that "citizens have a right to know how public funds are utilised." "The continued expansion of unchecked deductions poses a direct threat to equitable development, fiscal stability and public trust," ActionAid concluded.
ActionAid's call for a forensic audit, led by Country Director Andrew Mamedu, spotlights the staggering N34 trillion loss that trims more than 40 percent of federal revenue. This erosion, coupled with an IMF forecast of a 33.1 percent debt‑to‑GDP ratio by 2027, reveals a fiscal architecture that is both opaque and unsustainable. Ordinary Nigerians, already burdened by inflation and dwindling public services, are likely to bear the brunt of reduced health, education and security spending. The episode fits a recurring pattern of concealed revenue channels that consistently undermine Nigeria's development agenda.
💡 NaijaBuzz is an AI-assisted news aggregator. This content is curated from third-party sources — NaijaBuzz is not the original publisher and is not responsible for the accuracy of source reporting. The NaijaBuzz Take is AI-assisted editorial opinion only, not established fact. All persons mentioned are presumed innocent until proven guilty by a court of competent jurisdiction. NaijaBuzz does not endorse the views expressed in source articles.
