The Accountant-General of the Federation (AGF), Shamseldeen Ogunjimi, disclosed on Monday that the inflows into the federation account rose to N35 trillion in 2025, representing 29.63 percent increase over the N27 trillion that accrued to the accounts in 2024.
Ogunjimi made this disclosure at the Federation Account Allocation Committee (FAAC) Post Mortem Sub-Committee retreat with the theme “Assessing Fiscal and Sectoral Policies for Closing Revenue Leakage in the Federation Account” held in Enugu.
Represented at the meeting by a Director from his office, Mrs. Rita Okolie, the AGF said the growth was a reflection of the positive impact of fiscal reforms being implemented by the present administration, and desirable for the drive towards 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 the federal system being the primary channel for national resources mobilization and equitable distribution of the resources among the three tiers of government.
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Despite the improvement in revenue accruals to the federation account, Ogunjimi lamented that the volatility of oil revenues and sub-optimal accruals from the non-oil sector remained a major challenge to the government’s efforts to achieve fiscal efficiency.
He clarified: “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”, the AGF added.
On revenue leakages’ impact on the fiscal system, Ogunjimi explained that revenue leakages were not merely accounting gaps or abstract but specific and quantifiable, occurring at collection, remittance, and expenditure points in the fiscal value chain
Specifically, he described leakages as lost opportunities for development, weakened public trust, and constraints in the 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.
In her address at the forum, the Minister of State Finance, Dr. Doris Uzoka-Anite, assured the participants that the ministry would continue to promote and ensure equity, fairness and justice in the operations and management of federal account.
The minister, who was represented by the ministry’s Director of Home Finance, Ali Mohammed, expressed confidence that the deliberations and recommendations at the meeting would help in strengthening the mechanism for utilization of revenues on people-oriented services.
Earlier in his welcome address, the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mohammed Shehu, said the quantum of revenues for distribution to the three tiers of government had been increasing over the past months.
Represented by Vice Chairman of the FAAC Post Mortem Subcommittee, Eyo-Nsa Whiley, the RMAFC chairman linked the improved revenues to the growing economic performance as well as fiscal and sectoral policies, legislative reforms, economic instruments, and financing arrangements of the Federal Government.
