Nigeria recorded a major fiscal milestone in 2025 as inflows into the Federation Account rose to ₦35 trillion, up from ₦27 trillion in 2024, the Accountant-General of the Federation (AGF), Dr Shamseldeen Ogunjimi, has said.
Ogunjimi disclosed this at the Federation Account Allocation Committee (FAAC) Post Mortem Sub-Committee Retreat held on Monday in Enugu, attributing the growth to fiscal reforms introduced by the administration of President Bola Tinubu.
Represented by the Director, Federation Account, Mrs Rita Okolie, the AGF said the improvement reflected Nigeria’s gradual shift toward a more resilient economy with reduced dependence on volatile oil receipts.
The retreat, themed “Assessing Fiscal And Sectorial Policies For Closing Revenue Leakage In The Federation Account,” brought together officials from the Ministry of Finance, Office of the AGF, Nigerian National Petroleum Company Limited (NNPCL), Federal Inland Revenue Service, Central Bank of Nigeria, Nigeria Customs Service, State Accountants-General, Debt Management Office, Ministry of Solid Minerals Development, and the Nigeria Extractive Industries Transparency Initiative (NEITI).
According to Ogunjimi, the Federation Account remains the backbone of Nigeria’s fiscal federalism, serving as the primary channel through which national resources are pooled and shared among the federal, state, and local governments.
However, he warned that persistent challenges – including oil revenue volatility, weak non-oil revenue performance, and systemic leakages – continued to undermine efficiency and predictability.
“Our recent progress is undeniable. In 2025 alone, inflows into the Federation Account exceeded ₦35 trillion, a significant increase from ₦27 trillion recorded in 2024,” he said.
The AGF explained that revenue leakages were concrete and measurable losses occurring at three critical points – collection, remittance, and expenditure oversight – with direct consequences for national development.
“Every naira lost represents a school not built, a road left unfinished, or a critical public service delayed,” he said, stressing the need for stronger accountability and institutional discipline.
The Minister of Finance (State), Dr Doris Uzoka-Anite, assured participants of the Federal Government’s commitment to equity, fairness, and transparency in the management of the Federation Account. She was represented by the Director of Home Finance, Dr Ali Mohammed, who expressed confidence that the retreat’s deliberations would strengthen fiscal coordination and public trust.
Also speaking, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr Mohammed Shehu, said the volume of resources available for distribution was increasingly shaped by fiscal policies, legislative reforms, and financing arrangements.
Represented by Eyo-Nsa Whiley, Vice Chairman of the FAAC Post Mortem Sub-Committee, Shehu noted that some policies had unintentionally created leakages, deductions, and structural constraints that reduced net inflows into the Federation Account.
In a goodwill message, Governor Peter Mbah of Enugu State, represented by the Secretary to the State Government, Prof. Chidiebere Onyia, said fiscal discipline and efficient resource management remained central to Enugu’s development strategy.
He expressed confidence that recommendations from the retreat would strengthen revenue mobilisation, improve compliance, and restore confidence in Nigeria’s fiscal institutions.
Earlier, Chairman of the FAAC Post Mortem Sub-Committee, Mr Abdulaziz Idris, said the retreat was designed to conduct in-depth analysis of Federation Account statements and reports from revenue-generating agencies presented at FAAC monthly meetings, with the goal of enhancing revenue accruals.
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