Nigeria Loses N20 Trillion Annually to Revenue Leakages

Olisa Agbakoba Legal has released a policy paper indicating that Nigeria is losing up to N20 trillion annually due to revenue leakages. The report attributes this loss to the failure to implement Section 162(1) of the 1999 Constitution, which mandates that all revenue collected by the federal government be paid into the federal account.

Despite projected federal revenue increases from N16.8 trillion in 2023 to N31.9 trillion in 2024, the country’s public debt is expected to rise to N159.27 trillion by the end of 2025, with debt servicing consuming 78% of federal revenue in 2023. The Nigerian National Petroleum Company Limited (NNPCL) is identified as a major contributor to the revenue gap, with allegations of opaque remittance practices.

The report recommends constitutional amendments to ensure full remittance of revenue without prior deductions for state costs, which could significantly reduce reliance on borrowing and improve fiscal transparency.