Figures cited by The Punch show that Nigeria is currently grappling with the management of a N14.5 trillion oil windfall, with financial experts warning that the funds are at high risk of being squandered. Despite the surge in global energy prices and improved local production, there are concerns that the lack of a robust fiscal buffer could lead to the misallocation of these resources.
The report highlights that without disciplined spending and investment in critical infrastructure, the current gains from oil may not translate into long-term economic stability. Analysts are urging the federal government to prioritize debt servicing and the Sovereign Wealth Fund to protect the economy against future price shocks.
In a corroborating report by BusinessDay, economists noted that the “law-reality gap” in Nigeria’s fiscal policy often leads to revenue leakages. They stressed that the 2026 fiscal year must be defined by “administrative empathy and clarity” to ensure the windfall reaches the most vulnerable sectors of the population.
The Guardian Nigeria quoted a lead economist: “Nigeria cannot afford another cycle of ‘boom and bust’ management.” Leadership Newspaper added that “the lack of transparency in the distribution of excess crude accounts remains a bottleneck for fiscal accountability.”
Echotitbits take:
This N14.5 trillion windfall is a double-edged sword. While it provides immediate relief for the budget deficit, history shows that Nigeria often fails to save during periods of high oil prices. Watch for how the National Assembly debates the supplementary budget, as this will reveal if the money goes toward capital projects or recurrent expenditure.
Source: The Punch – https://punchng.com/n14-5tn-oil-windfall-at-risk-of-wastage-analysts/, and February 22, 2026
Photo credit: The Punch
