Agbakoba faults Tnubu’s borrowing trend, raises concern over Federation Account

A former President of the Nigerian Bar Association (NBA), Olisa Agbakoba, has expressed concern over what he described as a worsening financial crisis in Nigeria’s Federation Account, warning that massive revenue deductions and under-remittances are weakening the country’s economy.

In a post shared on X on Wednesday, the senior lawyer said many Nigerians were unaware of the strategic importance of the Federation Account established under Section 162 of the 1999 Constitution to collect and distribute revenues among the federal, state and local governments.

According to Agbakoba, the account, which he described as “the financial heartbeat” of Nigeria, is under severe pressure due to alleged revenue leakages and increasing debt obligations.

“Most Nigerians are unaware that the country has a vital financial institution known as the Federation Account. Created under Section 162 of the 1999 Constitution, this account is designed to collect and store every kobo of revenue generated by the federal government,” he wrote.

He claimed that in 2025 alone, about ₦14.94 trillion — nearly 40 per cent of the federation’s total revenue — was deducted before reaching the Federation Account.

Agbakoba also alleged that the Nigerian National Petroleum Company Limited (NNPCL) withheld ₦500 billion out of ₦1.1 trillion due in 2024.

He further disclosed that a current Federation Account Allocation Committee (FAAC) investigation is probing alleged under-remittances amounting to $42.37 billion between 2011 and 2017.

The former NBA president warned that Nigeria’s rising debt profile remains a major concern, noting that debt servicing consumed 69 per cent of federal revenue last year, far above the International Monetary Fund’s recommended threshold of 30 to 40 per cent.

“Our total public debt has now ballooned to ₦159.27 trillion,” he stated.

“In essence, we are borrowing against funds that we have already earned because that revenue never reaches the Federation Account.”

Agbakoba said he had prepared a policy reform proposal for President Bola Tinubu aimed at strengthening Executive Order 9 and improving transparency and accountability in the management of public finances.

He called for national discussions on restoring financial discipline and protecting the integrity of the Federation Account.

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