A Senior Advocate of Nigeria, Olisa Agbakoba, has alleged that Nigeria is losing an estimated N20tn annually to revenue leakages, blaming what he described as systemic failures in the management of public funds under the administration of President Bola Tinubu.
Agbakoba made the claim in a policy paper released on Wednesday by Olisa Agbakoba Legal, where he accused the Federal Government of failing to comply with constitutional provisions governing the remittance of revenues into the Federation Account.
According to the senior lawyer, funds that should ordinarily accrue to the Federation Account are either withheld or diverted before remittance, in breach of Section 162(1) of the 1999 Constitution (as amended).
He quoted the provision as stating that, “The Federation shall maintain a special account to be called the Federation Account into which shall be paid all revenues collected by the Government of the Federation,” stressing that the requirement “is not being followed.”
Agbakoba also criticised the continued operation of the Treasury Single Account, arguing that it lacks constitutional backing and cannot substitute for the Federation Account as stipulated by law.
He noted that the TSA, introduced through executive directive, does not possess the same legal force as the constitutional provision and has failed to curb leakages in public revenue.
The policy paper warned that the alleged revenue losses have significantly worsened Nigeria’s fiscal position, with nearly 70 per cent of government revenue reportedly spent on debt servicing.
“That is money that cannot build roads, hospitals, or schools. It is money that goes to service debt that should never have been necessary in the first place,” Agbakoba said.
To tackle the challenge, the SAN proposed a constitutional amendment mandating that all revenues be paid into the Federation Account in full before any deductions are made.
He added that costs related to revenue generation should only be disbursed after remittance and subject to appropriation by the National Assembly.
Agbakoba maintained that enforcing such a framework would eliminate leakages at source and enhance transparency in public finance management.
He warned that failure to implement urgent reforms could deepen the country’s fiscal crisis, hinder economic growth and further weaken service delivery.
The senior advocate also urged Nigerians to make the issue a central subject in the 2027 general elections, calling on citizens to demand accountability and clear policy direction from political leaders.
“This must become an election issue in 2027. Every presidential candidate must be asked how they intend to resolve the Federation Account crisis,” he said.
Agbakoba added that the matter goes beyond technical fiscal considerations, describing it as a critical issue of governance and accountability.
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