Enugu (Nigeria): The Accountant-General of the Federation (AGF), Dr Shamseldeen Ogunjimi, said inflows into the Federation Account rose to N35 trillion in 2025. This marks a significant increase from N27 trillion in 2024.
Ogunjimi was represented by Mrs Rita Okolie, the Director of the Federation Account. He made the disclosure during the Federation Account Allocation Committee (FAAC) Post-Mortem Sub-Committee Retreat in Enugu on Monday.
The theme of the retreat was “Assessing Fiscal and Sectoral Policies for Closing Revenue Leakage in the Federation Account”.
Participants included officials from the Ministry of Finance, the Office of the AGF, and the Nigerian National Petroleum Corporation.
Others included the Nigeria Revenue Service, the Ministry of Solid Minerals Development, the Central Bank of Nigeria, the State Accountants-General, the Nigeria Customs Service, the Debt Management Office, and the Nigeria Extractive Industries Transparency Initiative, among others.
Ogunjimi stated that the growth demonstrates the positive impact of the fiscal reforms implemented by the administration of President Bola Tinubu.
The AGF noted it also signals a promising shift toward a more resilient economy, less reliant on the unpredictable oil market.
According to him, the Federation Account remains the fiscal lifeline of our federal system, as it is the primary channel through which national resources are mobilised, pooled, and equitably distributed among the three tiers of government.
“However, persistent revenue shortfalls, volatility in oil receipts, suboptimal non-oil revenue performance, and systemic leakages have continued to undermine the efficiency, predictability, and credibility of the federation account.
He emphasised that the Sub-Committee’s convention comes at a time when Nigeria’s fiscal resilience, revenue integrity, and institutional accountability are more important than ever.
He further stated, “Our recent progress is clear. In 2025, inflows into the Federation Account exceeded N35 trillion, marking a notable increase from N27 trillion in 2024.”
The Account-General explained that revenue leakages were not merely accounting gaps or abstract but specific and quantifiable.
He added that leakages happened at three key points: collection, remittance, and expenditure oversight.
“These are lost development opportunities, weakened public trust, and constraints on our shared goal for a stronger Nigeria. Every naira lost means a school is not built, a road is unfinished, or a vital service is delayed,” he said.
The Minister of Finance (State), Dr Doris-Anite, assured the participants that she would continue to promote and ensure equity, fairness and justice in the operations and management of the Federal Account.
The minister, represented by the Director of Home Finance from the ministry, Dr Ali Mohammed, also expressed confidence that the deliberation would strengthen the mechanism that ensured the Federation Account serves the people better.
Earlier, Dr Mohammed Shehu, Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), noted that the volume of resources available for distribution by the three tiers of government had increasingly been influenced.
This, he said, was not only about economic performance but also about a growing array of fiscal and sectoral policies, legislative reforms, economic instruments, and financing arrangements.
Shehu, represented by the Vice-Chairman of the FAAC Post-Mortem Sub-Committee, Eyo-Nsa Whiley, said the policies had resulted in unintended revenue leakages, first-line charges, deductions, and structural constraints that reduced net inflows into the Federation Account.
He added that this has created loopholes, weakening transparency and reducing distributable revenue.
Gov. Peter Mbah of Enugu State, in a message, said that fiscal discipline, efficient resource management, and value-driven governance remained central pillars of Enugu State’s development agenda. The governor, represented by Prof. Chidiebere Onyia, Secretary to the State Government, said he believes programming revenue regulations and stronger fiscal coordination are essential for sustainable growth.
This, he said, would deliver tangible benefits to the people.
He said that the recommendations from the retreat would help to improve revenue mobilisation, strengthen compliance, and restore public confidence in fiscal institutions.
In his welcome address, Chairman of the FAAC Post-Mortem Sub-Committee, Mr Abdulaziz Idris, explained that the theme resonated deeply with their collective mission to optimise revenue mobilisation and ensure transparency in the management of Nigeria’s resources.
He said that the Sub-Committee was set up to carry out in-depth analyses of the component statements of the Federation Account and the reports of Revenue Generating Agencies as presented to FAAC during its monthly meetings.
This, he said, was to enhance revenue accruals into the federation. Accoidris thanked Mbah for hosting the retreat. He said, “I hope the discourse and knowledge shared at this retreat will benefit us and Nigeria in general.”