Senior Advocate of Nigeria and former President of the Nigerian Bar Association, Dr. Olisa Agbakoba, has attributed Nigeria’s worsening fiscal and governance challenges not only to revenue leakages but also to what he described as a deep-rooted culture of inefficiency, weak institutional discipline, and inconsistent policy implementation within the qcivil service and public administration structure.
He made the remarks on Monday during an interview on Frontline, a current affairs programme on Eagle 102.5 FM, Ilese Ijebu, Ogun State, where evaluate Nigeria’s fiscal system beyond oil revenue leakages to include governance culture, bureaucratic behaviour, and institutional fragmentation across government agencies.
Agbakoba argued that Nigeria’s fiscal dysfunction is not solely driven by corruption, insisting that in many cases, inefficiency, inertia, and weak administrative culture play an equally significant role. He stated that the civil service, which plays a critical role in policy execution, has become increasingly ineffective in delivering governance outcomes due to lack of discipline and accountability structures.
“I know these civil servants are very, very influential in executing policy. There is also inconsistency in policy. There’s too much politicking and less governance. As you know, if you ask me today, 90 percent, in fact virtually all officeholders are more interested in 2027 than governance. So governance occupies a very, very loose threshold. And when governance does occupy a loose threshold, there’s a gap. So you’d be surprised that not all of these leakages is because of corruption. Not all. Some are just absolutely lazy. They go to work at eight o’clock in the morning, close at five, do nothing. Mornings come, they don’t care.”
He maintained that this attitude undermines policy execution, regardless of how well policies are designed at the political level, because implementation remains the weakest link in governance.
He further argued that governance in Nigeria has been overtaken by political cycles, where officeholders are more concerned about future elections than administrative delivery. According to him, this disconnect has weakened institutional focus and created room for systemic inefficiency. He said, “There’s a culture of laziness in the civil service. There’s a culture of laziness which ought not to be there. I know these civil servants are very, very influential in executing policy. There is also inconsistency in policy. There’s too much politicking and less governance. As you know, if you ask me today, 90 percent, infact virtually all officeholders are more interested in 2027 than governance. So governance occupies a very, very loose threshold. And when governance does occupy a loose threshold, there’s a gap.” He warned that this political obsession reduces attention to long-term national planning and weakens institutional continuity.
Agbakoba referenced Nigeria’s Treasury Single Account (TSA) policy, introduced to consolidate government revenue and improve transparency, noting that while it initially strengthened fiscal coordination, its effectiveness has been eroded over time. He explained that Ministries, Departments and Agencies (MDAs) have developed methods of bypassing the system, thereby weakening its intended purpose.
“Okonjo-Iweala introduced the TSA, although it became effective under late President Buhari. And that absolute is really the federation account. I don’t know why they created the TSA, because that’s exactly what the fiduciary account is meant to do. Initially, it worked well. But right now, the MDAs have found ways to bypass it, short-circuit it, and we’re back to the same thing.”
He also criticized what he described as excessive duplication of fiscal oversight institutions in Nigeria. According to him, the country has multiple agencies responsible for financial monitoring, but coordination and enforcement remain weak. He listed institutions such as the Ministry of Finance, Budget Office of the Federation, Fiscal Responsibility Commission, Office of the Accountant-General, and Office of the Auditor-General, arguing that despite their presence, fiscal discipline remains poor.
Agbakoba compared Nigeria’s system with advanced economies, noting that countries like the United States and the United Kingdom operate more streamlined and independent fiscal monitoring structures. He argued that Nigeria’s problem is not absence of institutions but lack of independence and enforcement capacity. He maintained that audit institutions often raise concerns, but their reports are rarely acted upon.
“I think part of the issue would be for government to really engage in financial and fiscal prudence so that money… In the UK, for instance, they have the Office of Budget Responsibility. It’s independent of the government. So it monitors and tracks how monies are spent, how it’s allocated and everything. In the US, it’s called the Office of Management and Budget. Here, I can, let me just look at my notes here to just show you how many we have. I think we have about up to 10 of these offices. I’m not sure who does what. You know, it’s all big stock. So I think part of the issue would be for government to really engage in financial and fiscal prudence.”
He stressed that institutional independence is essential for effective fiscal governance, arguing that agencies responsible for monitoring public funds must be insulated from political interference. According to him, without such independence, accountability mechanisms will remain ineffective regardless of how many agencies are created.
Agbakoba also raised concerns about budget implementation practices, arguing that in many cases, revenue deductions are made at source before remittance to the Federation Account, undermining transparency. He described this practice as a form of “double budgeting,” where funds are both deducted and re-appropriated within the same fiscal cycle.
He explained that some agencies deduct operational costs before remitting remaining funds, and later re-present the same figures within budget proposals, creating distortions in financial reporting and appropriation processes.
Agbakoba further argued that Nigeria’s fiscal structure lacks proper oversight discipline, noting that the National Assembly and oversight committees often fail to interrogate revenue figures and deductions effectively. He maintained that stronger legislative scrutiny is required to ensure accurate financial reporting and accountability.
“The question now was whether this is net or gross. So some of the ministries, departments, and agencies claim that when they deduct, they are allowed to deduct, because the constitution did not say they cannot deduct. So you see how clever they are? But the Supreme Court made very clear that we cannot deduct a dime. You pay the money in, when you’ve paid it in, and then you request, so what’s happening is that Nigeria is wrong. You see what they claim they are doing in the National Assembly when they pass budgets? This is a hoax and a joke. The money has been chopped already. All right, so I’m the head of the parastatal. I get about 10 trillion. I say that 5 trillion is what I have spent for OPEX, that is operating expenses, so I deduct it. I say, oh, I need another maybe 2 trillion for capital. I deduct it 7. Then I send 3 to the federation account in the year 2026. Then I prepare a budget for 2027, which I send to the National Assembly. The very monies I have deducted, I now create a budget and put it again. That’s absolute double padding.”
He also called for reforms in the qualification and selection process for public office holders, arguing that leadership positions should not be based solely on political affiliation or financial strength. According to him, governance requires competence, constitutional understanding, and administrative capacity.
He proposed the introduction of structured public debates or qualifying processes for political aspirants, suggesting that such mechanisms would help evaluate competence before elections. He argued that many public office holders lack basic understanding of constitutional responsibilities tied to their offices.
Agbakoba criticized the quality of legislative and executive questioning during ministerial screenings, arguing that officials are often confirmed without adequate scrutiny of their constitutional roles. He maintained that this weakens governance from the point of appointment.
He said that even when ministers appear before the National Assembly for screening, they are rarely questioned on constitutional provisions guiding their ministries. According to him, this reflects a deeper institutional failure in leadership selection and oversight processes.
“You know, I speak to lots and lots of members of the National Assembly and I’m absolutely stunned at their lack of knowledge of the constitution. Even when ministers come to the National Assembly to present themselves for approval, nobody asks them questions. Okay, so you’re going to be minister of ABC. What does the constitution say about your ministry? What laws apply to it? Nothing. A lot of them, they don’t treat them with portfolios. Well, that’s the point. That’s the point. So, you see that even the president in assigning, picking his cabinet, ought to say, this guy is going to this ministry. So that, from that point on, we can see a very transparent, you know, process about people who come forward, being competent for the job they do.”
He further argued that Nigeria’s political system has become heavily monetized, where electoral success is often determined by financial strength rather than competence or ideas. He noted that campaign environments are dominated by material inducement rather than policy discussions.
Agbakoba stressed the need for civil society and the media to play a stronger role in demanding accountability and improving public awareness. He said public education on constitutional provisions, particularly Section 162 which governs the Federation Account, is critical to empowering citizens to challenge fiscal mismanagement.
He urged Nigerians to become more engaged in questioning how public revenue is managed, insisting that citizens have legal backing to demand transparency. He argued that stronger civic participation is necessary to counterbalance institutional weaknesses.
“I would urge all people, anyone listening, go and read section 162 so you get that awareness that you are entitled by law to question. Any Nigeria can go to court to question the way government revenue is spent. So, please, that’s the point number one. Point number two is we need also to interrogate the process of qualifications. The thing about WAEC is too low. WAEC is too low. In fact, in most cases, there’s nothing that says you cannot be in public office. Well, that’s qualification. I’m not sure that is correct. So, there’s a need to have that fundamental review and reform because that’s what would bring in many people like it happened in Singapore, people who understand what they are doing.”
He concluded that Nigeria requires a comprehensive restructuring of its fiscal and governance architecture, combining institutional reform, stronger oversight, and improved political accountability. According to him, without such reforms, inefficiency and weak governance culture will continue to undermine national development.
