ActionAid Nigeria has demanded an urgent wholistic forensic audit of Nigeria’s revenue management system.
The organisation said its concerns and demand are predicated on the revelations that more than ₦34 trillion was deducted from federal earnings before allocation to the three tiers of government.
This was just as ActionAid particularly criticised the lack of transparency surrounding major public expenditures, citing major concerns over projects such as the Nigeria Revenue Service building, where cost details and procurement processes were not publicly disclosed.
It particularly noted the scale of the deductions which accounted for over 40 per cent of federal revenue in recent years, clearly points to systemic weaknesses in public financial management, stressing that it poses a serious threat to fiscal stability and development financing.
ActionAid, in a statement on Thursday, April 16, 2026 Mr Andrew Mamedu, Country Director, noted that 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.
The organisation said that the findings have reinforced long-standing concerns about Nigeria’s widening fiscal constraints and rising debt burden.
According to ActionAid; “The persistence of large-scale revenue leakages represents both a governance failure and a missed opportunity to strengthen fiscal stability.
“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,” it stated.
ActionAid therefore 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.
It further said; “The widening gap between gross revenue and distributable income is constraining development financing and increasing dependence on debt”.
ActionAid noted with serious concerns what it described as “opaque and fragmented” revenue channels, stressing that substantial portions of national income pass through multiple layers before reaching the Federation Account.
It specifically said that the lack of public disclosure around these deductions—including their justification, structure, and end-use—raises critical accountability questions.
In the words of ActionAid: “There is limited transparency on how these funds are managed,” the organisation stated. “This opacity weakens fiscal oversight and undermines public trust in governance.”
The organisation stressed that the development has a serious broader implication for national development, thus warned that reduced public revenue is limiting government capacity to invest in essential sectors such as healthcare, education, security, and social protection.
ActionAid Nigeria also said the consequences are already being felt by millions of Nigerians, adding that 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.
Mamedu further said that weakening fiscal capacity is also exacerbating insecurity, as economic pressures fuel crime, displacement, and social instability.
He said; “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. Citizens have a right to know how public funds are utilised”.
ActionAid insisted that accountability must extend beyond revenue collection to expenditure, thus warned that without urgent reforms, Nigeria risks entrenching a system where public resources are consistently depleted before they can deliver meaningful impact.
It said; “The continued expansion of unchecked deductions poses a direct threat to equitable development, fiscal stability, and public trust”.
It therefore 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 and demanded the immediate publication of detailed breakdowns of all deductions, strengthened independent oversight of revenue-generating agencies, and reforms to eliminate systemic leakages.
ActionAid also tasked 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.
It stressed that Nigeria’s development trajectory depends not only on revenue generation but on how effectively public resources are managed and deployed.
According to Mamedu; “This is not just a fiscal issue; it is a matter of justice. Every naira that fails to reach essential services denies Nigerians access to healthcare, education, and dignity”.
