Enugu: The inflow into Nigeria’s Federation Account witnessed a substantial increase, reaching N35 trillion in 2025, up from N27 trillion in 2024, according to the Accountant-General of the Federation (AGF), Dr. Shamseldeen Ogunjimi. This development was announced during the Federation Account Allocation Committee (FAAC) Post-Mortem Sub-Committee Retreat held in Enugu, where Ogunjimi was represented by Mrs. Rita Okolie, Director of the Federation Account.
According to News Agency of Nigeria, the retreat, themed ‘Assessing Fiscal and Sectorial Policies for Closing Revenue Leakage in the Federation Account,’ attracted participants from various governmental bodies, including the Ministry of Finance, Office of the AGF, Nigerian National Petroleum Corporation, Nigeria Revenue Service, Ministry of Solid Minerals Development, Central Bank of Nigeria, State Accountants-General, Nigeria Customs Services, Debt Management Office, and Nigeria Extractive Industries Transparency Initiative, among others.
Ogunjimi attributed the growth in the Federation Account to the fiscal reforms implemented by President Bola Tinubu’s administration, which aimed to create a more resilient economy less reliant on oil revenue cycles. He emphasized that the Federation Account serves as the fiscal backbone of Nigeria’s federal system, facilitating the mobilization and distribution of national resources among the three tiers of government.
Despite recent progress, Ogunjimi highlighted ongoing challenges such as revenue shortfalls, volatile oil receipts, suboptimal non-oil revenue performance, and systemic leakages that undermine the efficacy of the Federation Account. He noted that revenue leakages occur at critical points-collection, remittance, and expenditure oversight-resulting in lost development opportunities and weakened public trust.
Dr. Doris-Anite, Minister of Finance (State), represented by Dr. Ali Mohammed, Director of Home Finance, affirmed her commitment to equity, fairness, and justice in managing the Federal Account. She expressed confidence that the retreat’s discussions would enhance mechanisms to better serve the people through the Federation Account.
Dr. Mohammed Shehu, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), acknowledged the increasing influence of fiscal and sectoral policies, legislative reforms, and economic instruments on the resources available for distribution. Represented by Eyo-Nsa Whiley, Vice-Chairman of the FAAC Post-Mortem Sub Committee, Shehu noted that these policies have led to unintended revenue leakages and structural constraints, reducing the net inflow to the Federation Account and weakening transparency.
Gov. Peter Mbah of Enugu State, through Prof. Chidiebere Onyia, Secretary to the State Government, emphasized the importance of fiscal discipline, efficient resource management, and value-driven governance in the state’s development agenda. He expressed hope that the retreat’s recommendations would bolster revenue mobilization, strengthen compliance, and restore public confidence in fiscal institutions.
Mr. Abdulaziz Idris, Chairman of the FAAC Post-Mortem Sub Committee, in his welcome address, underscored the retreat’s theme and its alignment with the mission to optimize revenue mobilization and ensure transparency in managing Nigeria’s resources. He explained that the Sub-Committee was established to conduct in-depth analyses of the Federation Account’s component statements and Revenue Generating Agencies’ reports presented during FAAC’s monthly meetings, aiming to enhance revenue accruals.