NDC presidential candidate Peter Obi has raised the alarm over what he describes as “institutionalized corruption on a massive scale,” following recent World Bank findings detailing significant leakages in Nigeria’s federation revenue.
“Nigeria is bleeding from within,” Obi stated, expressing deep concern over a financial paradox where increased national earnings are met with a decline in critical infrastructure and social investments.
The N34.44 Trillion Question
The controversy centers on data from the World Bank indicating that while Nigeria’s Federation Revenue surged to approximately ₦84 trillion over a three-year period, 41% of that total—amounting to ₦34.44 trillion—was not remitted to the Federation Account before distribution to federal, state, and local governments.
Obi was quick to point out the scale of this leakage. He noted that the missing ₦34.44 trillion exceeds the combined ₦34 trillion earmarked for capital projects in the 2024 and 2025 Appropriation Acts.
“This is not a mere oversight; it points to institutionalised corruption on a massive scale,” Obi declared in a statement published on his official X (formerly Twitter) handle.
He further lamented the “lethal paradox” of the Nigerian economy: earning more, yet having fewer resources available for healthcare, education, and infrastructure due to systemic deductions by government agencies.
“With such a broken system, how can we fix power, strengthen our schools, build resilient healthcare, or develop critical infrastructure?” Obi asked, adding that “Nigeria has no business being poor.”
A Critique of “Consumption Borrowing”
Obi’s recent attacks on President Bola Ahmed Tinubu’s economic management extend beyond revenue leakage to the administration’s borrowing policies.
He recently categorized the current government’s debt accumulation as a “leprosy” and a “killer cancer” because, he argues, it funds consumption rather than production. According to Obi, borrowing without tying the funds to investments that generate growth and jobs only burdens the state’s future capacity.
“Borrowing is not only a leprosy, but a killer cancer when it is borrowed for consumption and not production,” Obi stated, criticizing the administration for failing to adhere to the Fiscal Responsibility Act, which requires a clear cost-benefit analysis for government borrowing.
He emphasized that Nigeria’s dangerously high debt-servicing ratio—among the highest globally—constrains the nation’s capacity to finance human development. “If the money is wrongly spent as we do in Nigeria currently, it becomes double jeopardy,” he noted
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