THE ACCOUNTANT-GENERAL of the Federation (AGF), Dr Shamseldeen Ogunjimi, has said that the inflow into Federation Account rose to N35 trillion in 2025, a significant increase from N27 trillion in 2024.
Ogunjimi, represented by the Director Federation Account, Mrs Rita Okolie, disclosed this during the Federation Account Allocation Committee (FAAC) Post Mortem Sub-Committee Retreat held in Enugu on Monday.
Held under the theme: “Assessing Fiscal and Sectorial Policies for Closing Revenue Leakage in the Federation Account”, the retreat had as participants officials from the Ministry of Finance, Office of the AGF, the Nigerian National Petroleum Company Ltd; Nigeria Revenue Service, Ministry of Solid Mineral Development, Central Bank of Nigeria, State Accountants-General, Nigeria Custom Services, Debt Management Office and Nigeria Extractive Industries Transparency Initiative among others.
Ogunjimi said that the growth was a testament to the positive impact of fiscal reforms instituted by the administration of President Bola Tinubu.
AGF said it also reflected a heartening move toward a more resilient economy that would be less dependent on the volatile cycles of oil revenue.
According to him, the Federation Account remains the fiscal lifeline of our federal system as 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 oil receipts, suboptimal non-oil revenue performance, and systemic leakages have continued to undermine the efficiency, predictability, and credibility of the federation account.
“The retreat convention by the Sub-Committee came at a time when Nigeria’s fiscal resilience, revenue integrity, and institutional accountability are more critical than ever.
“Our recent progress is undeniable. In the year 2025, inflows into the Federation Account rose above N35 trillion, a significant jump from N27 trillion in 2024,” Ogunjimi said.
The account-general explained that revenue leakages were not merely accounting gaps or abstract but specific and quantifiable.
He added that they occurred at three critical junctions – collection, remittance, and expenditure oversight.
“They are lost opportunities for development, weakened public trust, and constraints on our collective aspiration for a stronger and more prosperous Nigeria as every naira lost is a school not built, a road unfinished, or a vital service 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 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 mechanism that ensured the Federation Account serve 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 governments had increasingly been influenced.
This, he said, was not only by economic performance but also by a growing array of fiscal and sectoral policies, legislative reforms, economic instruments and financing arrangements.
Shehu, represented by the Vice- Chairman, 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 inflow into the Federation Account.
According to him, it has also created loopholes that weaken transparency and diminish 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 development agenda.
The governor, represented by the Secretary to the State Government, Prof. Chidiebere Onyia, said he firmly believed that programming revenue regulations and strengthening fiscal coordination were indispensable to achieving 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, strengthening compliance, and restoring public confidence in fiscal institutions.
In his welcome address, Chairman, FAAC Post Mortem Sub Committee, Mr Abdulaziz Idris, explained that the theme resonated deeply with their collective mission to optimize revenue mobilisation and ensure transparency in managing Nigeria resources.
He said that the Sub-Committee was set up to carry out 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 with a view to enhancing the revenue accruals into the federation account.
Thanking Mbah for hosting the retreat, Idris said, “It is my hope that the discourse and knowledge that will be shared at this retreat would be of immense benefit to us and to Nigeria in general”. (NAN)
