Accountant-General of the Federation AGF, Dr Shamseldeen Ogunjimi
Inflows into Nigeria’s Federation Account rose to ₦35 trillion in the 2025 fiscal year, marking a significant increase from the ₦27 trillion recorded in 2024. The Accountant-General of the Federation (AGF), Dr. Shamseldeen Ogunjimi, disclosed these figures during the Federation Account Allocation Committee (FAAC) Post-Mortem Sub-Committee Retreat held in Enugu on Monday.
The retreat, themed “Assessing Fiscal and Sectoral Policies for Closing Revenue Leakage in the Federation Account,” gathered key stakeholders from the Ministry of Finance, the Central Bank of Nigeria (CBN), the Nigerian National Petroleum Corporation (NNPC), and the Nigeria Revenue Service, among others. The primary focus of the session was to evaluate the mechanisms driving national revenue and identify structural vulnerabilities.
Drivers of Revenue Growth
According to Dr. Ogunjimi, represented by Mrs. Rita Okolie, Director of the Federation Account, the 29.6 per cent year-on-year growth serves as evidence of the efficacy of the fiscal reforms initiated by President Bola Tinubu’s administration. The AGF noted that the increase reflects a strategic shift toward a more resilient economy, gradually reducing the nation’s historical over-reliance on volatile oil receipts.
Dr. Ogunjimi described the Federation Account as the "fiscal lifeline" of the Nigerian federal system, serving as the central hub for mobilizing and distributing national resources across the three tiers of government.
Addressing Systemic Leakages
Despite the record-breaking inflows, the AGF cautioned that systemic leakages continue to threaten the efficiency and predictability of the account. He identified three critical junctions where revenue is frequently lost:
Collection: Gaps during the initial gathering of taxes, duties, and levies.
Remittance: Delays or shortfalls in transferring collected funds to the federation pool.
Expenditure Oversight: Suboptimal monitoring of how distributed funds are utilized.
"Every naira lost is a school not built, a road unfinished, or a vital service delayed," Ogunjimi stated, emphasizing that these leakages represent quantifiable lost opportunities for national development and public trust.
Institutional Perspectives on Fiscal Integrity
The Minister of State for Finance, Dr. Doris Anite, echoed the need for transparency and equity in managing the account. Represented by Dr. Ali Mohammed, Director of Home Finance, the Minister reaffirmed the government’s commitment to strengthening mechanisms that ensure the Federation Account serves the collective interest of the populace.
Further insights were provided by Dr. Mohammed Shehu, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC). He observed that the volume of distributable resources is increasingly influenced by a complex array of sectoral policies, legislative reforms, and financing arrangements. He warned that some of these policies have inadvertently created "first-line charges" and structural constraints that reduce the net inflow into the account, thereby diminishing the revenue available for states and local governments.
The significant jump in revenue to ₦35 trillion provides a bolstered fiscal cushion for the 2026 budget cycle. However, the consensus among policymakers at the retreat remains that the sustainability of this growth depends on the aggressive closure of revenue loopholes. As Nigeria pursues broader economic stabilization, the recommendations from the FAAC Post-Mortem Sub-Committee are expected to play a decisive role in refining revenue mobilization and restoring public confidence in the nation's fiscal institutions.
