Dr Olisa Agbakoba, a Senior Advocate of Nigeria and former President of the Nigerian Bar Association, has called for urgent fiscal policy reform to address the massive revenue leakages plaguing the country. In a policy paper released on Wednesday, Agbakoba highlighted that Nigeria is losing up to N20 trillion every year due to non-compliance with Section 162 (1) of the Constitution.
Section 162 (1) and the Federation Account
Agbakoba explained that Section 162 (1) of the Constitution mandates that all revenues collected by the Government of the Federation be paid into a special account known as the Federation Account. However, he noted that this constitutional provision is not being adhered to. He recalled that former Finance Minister Dr Ngozi Okonjo-Iweala introduced the Treasury Single Account (TSA) to consolidate government revenues, but stressed that the TSA is not equivalent to Section 162. The TSA was established by executive directive and lacks the constitutional force of Section 162, resulting in continued leakages.
Proposed Solutions
The legal luminary recommended amending the Constitution to make the obligations of Section 162 clear, binding, and enforceable. He proposed that all revenues must be paid into the Federation Account in gross, with no deductions or offsets before payment. All costs related to revenue generation should be appropriated by the National Assembly and disbursed only after remittance into the Federation Account. He also called for a ban on any executive instrument or policy that creates accounts substituting the Federation Account.
Fiscal Reform as an Election Issue
Agbakoba urged that fiscal reform become a key issue in the 2027 elections, criticizing politicians for being indifferent to rising poverty. He questioned voter awareness, stating that many Nigerians do not understand why they vote or the nature of democracy practiced. He also doubted the suitability of democracy for African societies.
NNPC and Apapa Port
Agbakoba described the Apapa Port as technically dead and called the N1 billion borrowed to revamp it a waste. He advocated for the scrapping of the Nigerian National Petroleum Company Limited (NNPC), suggesting it should be listed on the stock market and reduced to a Plc. He claimed that NNPC is more powerful than the Nigerian government.
