The Federation Account Crisis — Dr. Olisa Agbakoba

Dr. Olisa Agbakoba said 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. From there, these funds are shared among federal, state, and local governments. In essence, the Federation Account serves as the financial heartbeat of our nation. However, it is facing severe challenges. Consider these striking figures: - In 2025, a staggering ₦14.94 trillion - almost 40% of the federation's total revenues - was deducted before reaching the Federation Account. - The Nigerian National Petroleum Company Limited (NNPCL) withheld ₦500 billion of the ₦1.1 trillion that was due in 2024. - A current FAAC investigation is delving into allegations of $42.37 billion in under-remittances that occurred between 2011 and 2017. - Debt service accounted for an alarming 69% of federal revenue last year, significantly exceeding the IMF's recommended safe benchmark of 30-40%. - Our total public debt has now ballooned to ₦159.27 trillion. In essence, we are borrowing against funds that we have already earned because that revenue never reaches the Federation Account. To address this urgent situation, I have crafted a policy reform proposal for the President @officialABAT to enhance Executive Order 9. This step is crucial for ensuring the financial integrity of our federation. Let’s engage in meaningful dialogue about how we can restore the heartbeat of our nation’s finances. Watch the full video to explore this pressing issue further. Posted on Twitter by @oagbakoba (AI NOTE: ADAORA SHOULD TELL LISTENERS TO WATCH DR. OLISA AGBAKOBA' FULL VIDEO IN THE GALLERY OF THIS ARTICLE)