Reported by: Puis Althea | Edited by: Oravbiere Osayomore Promise.
Development economist and investment banking executive Dr. Nnaemeka Onyeka Obiaraeri has launched a blistering indictment of Nigeria's fiscal governance, declaring that the three tiers of government consistently budget funds with the primary intention of looting them, while pointing to the staggering N2.9 trillion lost to contract over-invoicing as evidence of a systemic corruption crisis that has impoverished the nation. Obiaraeri made the remarks during an interview with Arise News Television, where he dissected the Federal Government's controversial $3.3 billion emergency loan secured by the Nigerian National Petroleum Company Limited, describing the administration's explanation as "weird" and "irrational." The economist's critique, however, extended far beyond the loan, zeroing in on what he described as a culture of institutionalised theft embedded in Nigeria's budgetary process.
"The three tiers of government keep budgeting what they want to loot," Obiaraeri declared, according to the interview transcript published by The Sun Nigeria on May 27, 2026. He argued that the country's fiscal challenges are not rooted in a lack of resources but in a systematic plunder of public funds that has persisted across successive administrations. The economist pointed to the disclosure made by the Chairman of the Economic and Financial Crimes Commission, Ola Olukoyede, during his Senate screening, when he revealed that Nigeria lost over N2.9 trillion to contract and procurement fraud between 2018 and 2020. "The EFCC Chairman told us on national TV during his screening that between 2008 and 2020 over N2.9 trillion was stolen, fraudulently taken through contract over-invoicing that is just one overhead," Obiaraeri said.
The EFCC chairman had made the revelation in October 2023 while fielding questions from senators during his confirmation hearing, stating that the staggering sum was lost to contract and procurement fraud alone within a three-year period. Olukoyede regretted that the N2.9 trillion would have been enough to build 1,000 kilometres of road, construct nearly 200 standard tertiary institutions, or educate about 6,000 children from primary to tertiary levels at N16 million per child. Obiaraeri seized on this disclosure to illustrate the scale of the looting that has become routine across all levels of government. "Over 60% of this monies annually are stolen," he said, adding that over $24 trillion has been taken out of the system over the years through various fraudulent schemes.
The economist's critique resonated with growing public frustration over Nigeria's fiscal management, as citizens grapple with soaring inflation, a weakened naira, and crumbling infrastructure. Obiaraeri argued that the country possesses the capacity to generate between $100 billion and $200 billion annually but is held back by corruption, insecurity, and structural deformities. He cited the rice value chain as a stark example, noting that while the Central Bank of Nigeria gave out N1.3 trillion to rice farmers, a bag of rice has surged from N8,500 in 2015 to between N45,000 and N50,000 today, despite Nigeria consuming 7.4 million tons of rice annually while producing only 3.8 million tons.
The economist's critique extended to the broader implications of the looting culture, particularly its impact on the naira's value and the country's ability to attract investment. He pointed to the over $8 billion in letter of credit obligations in the banking system, transactions that were consummated when the naira traded at N430 to the dollar. Today, with the dollar hovering around N1,515, manufacturers are being wiped out, and the government's response—borrowing $3 billion under a convoluted structure that will cost Nigeria $12 billion worth of crude oil—only compounds the problem. "Borrowing $3 billion under a convoluted and structured arrangement that will cost Nigeria $12 billion worth of crude oil almost 30% of our annual outputs when they are still obligations outstanding," Obiaraeri said, describing the loan as "weird" and "making no sense."
Obiaraeri's comments come amid heightened scrutiny of public expenditure and corruption in Nigeria, particularly as the 2027 elections approach and political parties jostle for position. His assertion that the three tiers of government budget with looting in mind echoes a sentiment long held by civil society groups and anti-corruption advocates, who have repeatedly warned that weak oversight and impunity have turned the budgetary process into a vehicle for elite enrichment. The EFCC's disclosure of N2.9 trillion in contract fraud, coupled with Obiaraeri's estimate that over 60 percent of annual budgets are stolen, paints a grim picture of a country where public funds are systematically diverted from their intended purposes.
The development economist also challenged the narrative that Nigeria is inherently poor, insisting that the country has the resources to fund a N100 trillion budget without incurring naira debt if the right structures are in place. "We are not poor, we are being looted," he said, calling for a fundamental restructuring of Nigeria's fiscal architecture, including the divestment of at least 55 percent of the Federal Government's holdings in the NNPCL to allow private sector participation and greater transparency. His remarks have reignited calls for stronger anti-corruption measures, improved budget oversight, and accountability across all levels of government.
As the debate over Nigeria's fiscal management intensifies, Obiaraeri's warning serves as a sobering reminder of the scale of the challenge facing the country. The N2.9 trillion lost to contract over-invoicing is not merely a statistic but a representation of the schools, hospitals, roads, and opportunities that have been stolen from millions of Nigerians. Whether his words will prompt meaningful action or be lost in the noise of political rhetoric remains to be seen, but for now, the economist's critique stands as a powerful indictment of a system that, in his view, has turned the budget into a looting exercise.
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