World Bank Warns ‘Hidden Spending’ Is Draining N34.5 Trillion from Nigeria’s Revenue

A recent World Bank report reveals that Nigeria diverted over N34.5 trillion from federation revenue in the last three years through pre-distribution deductions. Between 2023 and 2025, gross earnings jumped from N17.08 trillion to an estimated N37.44 trillion. Yet “first-line charges” rose from N6.22 trillion to nearly N15 trillion, leaving less for federal, state and local governments. Agencies like the Customs Service, NNPC and FIRS automatically claim fixed shares of revenue. This pro-cyclical model operates outside the budget, weakening oversight and limiting capital expenditure. The World Bank warns these deductions undermine fiscal transparency and accountability, keeping public spending capacity from rising alongside growing revenues.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.