A coalition of civil society organisations has raised concerns over Nigeria’s worsening fiscal crisis, saying that the country loses over $18 billion annually to illicit financial flows, while debt servicing now consumes more than 70 percent of its revenue.

This was contained in a newly published advocacy paper titled “Financing for Development in Nigeria: Sectoral Context and Insights for the Fourth International Conference,” released ahead of the United Nations’ Fourth International Conference on Financing for Development (FfD4), scheduled to hold in Seville, Spain, on June 30, 2025.

The policy position was led by the Civil Society Legislative Advocacy Centre (CISLAC) in collaboration with Oxfam in Nigeria, Christian Aid, the International Budget Partnership, Tax Justice & Governance Platform, Connected Development, and others under the Africa Agenda on Financing for Development (Agenda Afrique).

According to the report, Nigeria faces a multidimensional financing gap driven by underperforming domestic resource mobilisation, inequitable global financial rules, and increasing vulnerability to climate change.
The document presented to journalists at a press conference in Abuja on Tuesday warned that critical sectors in the country have remained severely underfunded.

Presenting the report, executive director, CISLAC, Auwal Rafsanjani, lamented that education spending lags below the UNESCO-recommended benchmarks, health financing is under 4 percent of the GDP, and climate resilience remains a low national priority.

“Education spending falls below UNESCO benchmarks, health expenditure remains under four per cent of GDP, and the country loses over $18 billion annually to illicit financial flows. Meanwhile, Nigeria’s debt service-to-revenue ratio has now exceeded 70 percent, leaving little room for investment in people”, he said.

The report also stressed that while international frameworks such as the African Union’s Agenda 2063, ECOWAS Vision 2050, and the United Nations Sustainable Development Goals (SDGs) offer a shared vision for progress, the real struggle lies in resource mobilization.

It noted that the issue is not a lack of frameworks, but rather a lack of effective implementation due to several core problems.

Rafsanjani lamented that most Nigerian states do not have measurable development blueprints, making it difficult to track progress or attract meaningful investments.

The coalition called for sweeping global reforms to the international financial system while also urging world leaders attending the Seville conference to commit to more equitable global tax rules, improved access to concessional financing, and climate justice measures such as dedicated loss and damage funds for vulnerable countries.

Rafsanjani said, “The current financial architecture does not serve countries with large populations living in poverty. Reforms to Special Drawing Rights (SDRs), more inclusive decision-making in global institutions, and democratised access to green financing are long overdue.”

“We need a whole-of-society approach. Policymakers, legislators, the private sector, civil society, and development partners must work together to craft and implement strategies that can unlock new sources of revenue and improve financial management. We must improve domestic resource mobilization, combat illicit financial flows, eliminate waste and duplication, diversify our economy, and close the loopholes that allow money laundering, tax evasion, and capital flight to flourish.

“The upcoming global conference in Spain presents a strategic opportunity for Nigeria and other countries in the Global South to push for reforms in international finance architecture. We will be advocating for stronger global actions to combat illicit financial flows, recover stolen assets, and ensure fairer, more transparent international tax and debt systems.”