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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
Zulum Delivers Relief, Cash Support to 434 Ngoshe Residents Rescued from Boko Haram
Zulum Delivers Relief, Cash Support to 434 Ngoshe Residents Rescued from Boko Haram
By: Our Reporter
Borno State Government has distributed relief materials to 434 indigenes of Ngoshe community in Gwoza Local Government Area who were recently rescued by security agencies after spending three months in Boko Haram captivity.
Governor Babagana Umara Zulum visited the victims in Pulka on Monday and directed the immediate distribution of food and non-food items to support their recovery and reintegration.

In compliance with the Governor’s directive, the Director General of the Borno State Emergency Management Agency (SEMA), Alhaji Ali Abdullahi Isa, promptly supervised the distribution exercise.
Each rescued person received a bag of rice, a bag of maize grits, a mattress, a wrapper, and a shadda, while children received two pairs of clothing.

In addition, 208 heads of households received N50,000 each, fulfilling Governor Zulum’s earlier pledge of financial assistance.
Speaking during the distribution, the SEMA Director General said the intervention was part of the government’s immediate response to ease the hardship faced by the rescued victims.

“I am here at the instance of His Excellency, Governor Babagana Umara Zulum, who was here some few days ago, and to deliver the items he directed that it should be given to you as emergency relief,” Ali stated.
The rescued individuals are currently receiving medical care and psychosocial support at a government facility. Upon completion of the rehabilitation process, they will be reintegrated into their respective communities.
The exercise was carried out alongside the Chairman of Gwoza local government, representatives of the Ngoshe community, and other officials.
Zulum Delivers Relief, Cash Support to 434 Ngoshe Residents Rescued from Boko Haram
News
Democracy Day: Zulum gives 2 MRAPs, other logistics to Army, celebrates with IDPs
Democracy Day: Zulum gives 2 MRAPs, other logistics to Army, celebrates with IDPs
By: Michael Mike
Borno State Governor, Babagana Umara Zulum, marked Democracy Day with the handover of two Mine-Resistant Ambush Protected (MRAP) vehicles and critical logistics to the Nigerian Army, after joining internally displaced persons (IDPs) for a symbolic celebration and distribution of food items to 2,500 beneficiaries.
The armoured MRAPs delivered to the Theatre Command of Operation Hadin Kai on Friday are intended to enhance troop protection against improvised explosive devices (IEDs) and ambushes which remain a persistent threat in the fight against insurgents. Additional logistics include operational Hilux vehicles and motorcycles for frontline soldiers in difficult terrains.
Zulum also marked Nigeria’s Democracy Day celebration with Internally Displaced Persons (IDPs) at the Madinatu camp where he distributed food supplies, non-food items, and cash gifts to thousands of beneficiaries.
The distribution, held at the Madinatu IDP camp, served to consolidate Zulum’s resettlement gains. Over the past seven years, Borno State Government has successfully resettled more than 2 million IDPs in their ancestral communities in a dignified and voluntary manner.
“It gladdens my heart today, the 12th of June, 2026, to celebrate June 12th, Democracy Day, here in Madinatu Camp, the only formal camp that is standing inside Maiduguri Metropolitan Council, today, to the glory of God and the benefit of mankind, for the distribution of food and non-food items. Inshallah, this camp will be closed this year. This will be our last distribution exercise in this camp, or the second to the last,” Zulum said.
However, Governor Zulum used the occasion to announce a timeline for the camp’s closure. The governor ordered that Madinatu camp be shut down within one month, vowing to similarly close most IDP camps across various Local Government Areas in the coming phase of his administration’s resettlement strategy.
“Democracy must translate into restoring the dignity of our people,” Zulum told the IDPs. “Living in camps is not a permanent solution. Our goal remains to return every displaced person to their ancestral homes with security and means of livelihood.”
In addition to the food items, Zulum approved N50,000 each for the 2,500 beneficiaries present at the event.
“Each of the 500 beneficiaries mentioned will receive a 25kg bag of rice and a 25kg bag of sorghum. Women will receive wrappers. I also promise to provide 50,000 naira to each beneficiary. This amount can be credited into their own individual accounts, inshallah,” Zulum said.
The exercise was attended by the APC’s State Deputy Chairman, Garba Mulima, APC State Vice Chairman (Central) Abdur Rahman Abdulkarim, Acting Chief of Staff, Dr Babagana Mallumbe, Member representing Jere at the State Assembly, Abba Kyari Kolo, commissioners and commissioner designates and several other senior government officials.
Democracy Day: Zulum gives 2 MRAPs, other logistics to Army, celebrates with IDPs
News
Gov. Yusuf Commends DSS Over Arrest of Suspected Gun Courier in Kano
Gov. Yusuf Commends DSS Over Arrest of Suspected Gun Courier in Kano
By: Michael Mike
Kano State Governor, Abba Kabir Yusuf, has commended the Department of State Services (DSS) for the arrest of a suspected gun courier intercepted while allegedly transporting weapons believed to be destined for criminal elements in Katsina State.
The commendation was contained in a statement issued by the Governor’s spokesperson, Sunusi Bature Dawakin Tofa, on Thursday, June 12, 2026.

Governor Yusuf described the operation as a major breakthrough in the ongoing fight against banditry, terrorism and other violent crimes threatening communities across Northern Nigeria.
According to information provided by the DSS, the suspect, identified as Muhammad Abubakar, 30, was apprehended in Gezawa Local Government Area of Kano State while allegedly transporting four rocket-propelled grenade (RPG) tubes, three AK-47 rifles and two empty magazines to Funtua in Katsina State.
Preliminary investigations reportedly revealed that the suspect collected the weapons from an individual identified as Bello in the Maigatari border area of Jigawa State and was expected to receive N450,000 upon successful delivery of the arms.
Governor Yusuf praised the professionalism, vigilance and intelligence-driven approach of DSS operatives, noting that the timely interception prevented the weapons from falling into the hands of bandits and other criminal groups.
He said the operation underscored the critical role of intelligence gathering and effective collaboration among security agencies in tackling emerging security threats across the country.
The governor reaffirmed the commitment of the Kano State Government to supporting security agencies through sustained cooperation, logistics assistance and policies aimed at strengthening public safety throughout the state.
He also urged residents to remain vigilant and continue providing credible information to security agencies to aid efforts to combat crime and maintain peace.
Governor Yusuf expressed confidence that ongoing investigations would lead to the arrest and prosecution of all individuals connected to the alleged arms trafficking network.
The statement was signed by Sunusi Bature Dawakin Tofa, Director General, Media and Publicity, Government House, Kano.
Gov. Yusuf Commends DSS Over Arrest of Suspected Gun Courier in Kano
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