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Fiscal Storm: ActionAid Slams ₦34trn Revenue Deductions, Calls for Transparency
Fiscal Storm: ActionAid Slams ₦34trn Revenue Deductions, Calls for Transparency
By: Michael Mike
ActionAid Nigeria has called for an urgent forensic audit of Nigeria’s revenue management system following revelations that more than ₦34 trillion was deducted from federal earnings before allocation to the three tiers of government.
The organisation said the scale of the deductions—accounting for over 40 per cent of federal revenue in recent years—points to systemic weaknesses in public financial management and poses a serious threat to fiscal stability and development financing.
In a statement issued on Thursday, ActionAid said findings by the World Bank confirmed that a significant portion of government income is being absorbed through pre-distribution charges, including cost-of-collection frameworks and agency remittances, with limited transparency on their composition and utilisation.
“These findings reinforce long-standing concerns about Nigeria’s widening fiscal constraints and rising debt burden,” the group said. “The persistence of large-scale revenue leakages represents both a governance failure and a missed opportunity to strengthen fiscal stability.”
According to the organisation, the deductions—estimated at more than ₦34 trillion—have continued to rise alongside government revenues, leaving federal, state, and local governments with significantly reduced resources to fund public services.
ActionAid warned that the trend is worsening Nigeria’s reliance on borrowing, citing projections by the International Monetary Fund that the country’s debt-to-GDP ratio could climb to 33.1 per cent by 2027.
“The widening gap between gross revenue and distributable income is constraining development financing and increasing dependence on debt,” the statement added.
The group expressed particular concern over what it described as “opaque and fragmented” revenue channels, noting that substantial portions of national income pass through multiple layers before reaching the Federation Account.
It said the lack of public disclosure around these deductions—including their justification, structure, and end-use—raises critical accountability questions.
“There is limited transparency on how these funds are managed,” the organisation stated. “This opacity weakens fiscal oversight and undermines public trust in governance.”
ActionAid also pointed to broader implications for national development, warning that reduced public revenue is limiting government capacity to invest in essential sectors such as healthcare, education, security, and social protection.
The Country Director of ActionAid Nigeria, Andrew Mamedu, said the consequences are already being felt by millions of Nigerians.
“For citizens grappling with rising inflation, declining purchasing power, and economic hardship, the continued reduction in available public resources means fewer investments in essential services,” he said.
He added that weakening fiscal capacity is also exacerbating insecurity, as economic pressures fuel crime, displacement, and social instability.
“At a time when livelihoods are becoming more fragile, the erosion of public revenue further limits the government’s ability to respond effectively to these challenges,” Mamedu said.
The organisation further criticised the lack of transparency surrounding major public expenditures, citing concerns over projects such as the Nigeria Revenue Service building, where cost details and procurement processes have not been publicly disclosed.
“Citizens have a right to know how public funds are utilised,” the group said, stressing that accountability must extend beyond revenue collection to expenditure.
ActionAid warned that without urgent reforms, Nigeria risks entrenching a system where public resources are consistently depleted before they can deliver meaningful impact.
“The continued expansion of unchecked deductions poses a direct threat to equitable development, fiscal stability, and public trust,” it said.
To address the issue, the organisation called on the Federal Government to undertake a comprehensive and transparent review of all revenue deduction frameworks, with a view to ensuring accountability and efficiency.
It also demanded the immediate publication of detailed breakdowns of all deductions, strengthened independent oversight of revenue-generating agencies, and reforms to eliminate systemic leakages.
In addition, ActionAid urged the National Assembly to intensify its oversight role through public hearings and scrutiny of deduction structures, while calling on state governments, civil society, and the media to increase pressure for transparency.
“An independent forensic audit of all deduction mechanisms is critical to restoring public confidence,” the organisation said.
ActionAid added that Nigeria’s development trajectory depends not only on revenue generation but on how effectively public resources are managed and deployed.
“This is not just a fiscal issue; it is a matter of justice,” Mamedu said. “Every naira that fails to reach essential services denies Nigerians access to healthcare, education, and dignity.”
Fiscal Storm: ActionAid Slams ₦34trn Revenue Deductions, Calls for Transparency
News
After Owo, Katsina Death Sentences, Kogi Court Imposes Maximum Penalty On Man Arrested By DSS For Kidnapping, Murdering Neighbour
After Owo, Katsina Death Sentences, Kogi Court Imposes Maximum Penalty On Man Arrested By DSS For Kidnapping, Murdering Neighbour
Barely 24 hours after a Katsina State High Court sentenced to death a female arms courier arrested by the Department of State Services (DSS), a High Court of Kogi State has also imposed the death penalty on a man the DSS successfully prosecuted for kidnapping and murdering his neighbour, who ran a hotel in Obajana.
The Katsina and Kogi sentences came less than two weeks after a Federal High Court sitting in Abuja, imposed the death penalty on four men arrested by the DSS for carrying out the June 5, 2022 terrorist attack on St. Francis Catholic Church in Owo, Ondo State.
The Kogi court, presided over by Justice Abdul Nicodemus Awulu, on Tuesday, found Jibrin Halilu guilty on the charges of conspiracy and kidnapping, in contravention of Sections 12, 6 (1), and 4 (3)(a) of the Kogi State Kidnapping and Other Related Offences Prohibition Law, 2023. The court subsequently sentenced Halilu to death.
According to the prosecution, on March 23, 2023, Halilu and other members of his armed gang stormed Ever Ready hotel, Angwa-Tiv, in Obajana town,
abducting the proprietor, Uche Andrew Offo. Even though Offo’s family handed his abductors the N2.5 million ransom they demanded, they, nonetheless, killed him.
The DSS prosecutor told the court that operatives of the Service arrested Halilu on December 4, 2025.
“DSS investigations revealed that, while with his abductors, Offo was able to identify Halilu, who happened to be his neighbour, as being part of those who kidnapped him. That was when Halilu, despite the N2.5 million ransom he collected from Offo’s family, still killed him.
“Further investigations by the DSS also linked Halilu and his gang to the April 2, 2023 kidnapping of one Ibrahim Abdullahi, a resident of Oshokoshoko Community in Lokoja, from whom the gang collected a N5 million ransom,” a source also revealed.
The Kogi and Katsina convictions and sentencings come on the heels of a June 3, 2026, landmark verdict by a Federal High Court in Abuja sentencing four men to death for their roles in the June 5, 2022 terrorist attack on St. Francis Catholic Church in Owo, Ondo State.
The court sentenced the quartet of Idris Abdulmalik Omeiza, Al Qasim Idris, Jamiu Abdulmalik, and Abdulhaleem Idris to death by hanging for the attack which resulted in the death of over 40 worshippers and left over 100 persons injured.
“These convictions mark a significant run of courtroom victories for the DSS, reinforcing the message that those who engage in terrorism, kidnapping, and armed violence will not only be caught, but will be prosecuted and made to face the full consequences of their actions,” the source declared.
After Owo, Katsina Death Sentences, Kogi Court Imposes Maximum Penalty On Man Arrested By DSS For Kidnapping, Murdering Neighbour
News
Troops Rescue Four Kidnap Victims in Katsina, Intensify Hunt for Bandit Kingpin
Troops Rescue Four Kidnap Victims in Katsina, Intensify Hunt for Bandit Kingpin
By: Zagazola Makama
Troops of the Nigerian Army have rescued four kidnap victims during ongoing operations targeting a notorious bandit leader, Kachalla Muhammadu Fulani, and members of his criminal gang in Katsina State.
The Katsina State Government disclosed this in a statement issued on Wednesday by the Commissioner for Internal Security and Home Affairs, Dr. Nasir Mu’azu.

The rescued victims were identified as Musa Yakuba, 62; Alhaji Sa’adu Dayi, 68; Mukhtar Danja, 36; and Salisu Danja, 50.
According to the statement, the victims were rescued during sustained military operations in areas where the bandits were believed to be operating.
It added that medical personnel immediately attended to the victims following their rescue, as they had sustained gunshot wounds during their captivity.

The government recalled that the wife of the late Major General Rabe Abubakar (rtd) had earlier been rescued in a related operation.
It noted that the four victims were among those previously seen in a photograph alongside the late senior military officer while in captivity.
The state government commended the bravery, professionalism and commitment of the Nigerian Army and other security agencies involved in the operation.
It stated that the security forces’ relentless efforts continued to yield positive results in the fight against banditry and kidnapping across the state.

The government further assured residents that security operatives remained on the trail of Kachalla Muhammadu Fulani and other criminal elements responsible for terrorising communities.
It emphasised that ongoing operations would continue until all those responsible for acts of terror against innocent citizens were apprehended and brought to justice.
The government reaffirmed its commitment to protecting lives and property and pledged continued collaboration with security agencies to ensure that criminal elements have no safe haven anywhere in the state.
Troops Rescue Four Kidnap Victims in Katsina, Intensify Hunt for Bandit Kingpin
News
Nigeria, Saudi Arabia Deepen Humanitarian Alliance as NEMA, KSrelief Roll Out Food Aid to Five States
Nigeria, Saudi Arabia Deepen Humanitarian Alliance as NEMA, KSrelief Roll Out Food Aid to Five States
By: Michael Mike
The National Emergency Management Agency (NEMA) has reaffirmed its commitment to strengthening humanitarian cooperation with the King Salman Humanitarian Aid and Relief Centre (KSrelief), as both partners move to scale up emergency food assistance for vulnerable communities across Nigeria.
This was disclosed in Abuja when the Director-General of NEMA, Mrs. Zubaida Umar, received a delegation from KSrelief at the agency’s headquarters, where both sides reviewed ongoing collaboration and planned the next phase of direct humanitarian interventions.
Mrs. Umar commended KSrelief for its sustained support to disaster-affected and vulnerable populations in Nigeria, noting that the partnership has continued to reinforce federal humanitarian response efforts, particularly in reaching communities impacted by disasters, food insecurity, and other vulnerabilities.
KSrelief’s representative, Mr. Majeed Alanazi, said the visit was aimed at strengthening coordination with NEMA ahead of the rollout of direct food basket distribution to selected households in targeted states. He emphasized the organisation’s continued commitment to supporting vulnerable populations and improving welfare outcomes in affected communities.
According to the plan, the food assistance programme will be implemented across Yobe, Benue, Kebbi, Taraba, and Anambra States—covering both conflict-affected and food-insecure populations.
Both organisations described the initiative as part of a broader effort to deepen humanitarian reach and ensure more efficient delivery of aid to households most in need across Nigeria.
Nigeria, Saudi Arabia Deepen Humanitarian Alliance as NEMA, KSrelief Roll Out Food Aid to Five States
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