Nigeria’s federation account recorded a major financial boost in 2025, with total inflows rising to N35 trillion, marking a sharp increase from the N27 trillion generated in 2024.
Gatekeepers News reports that this represents a growth of N8 trillion, equivalent to 29.63 percent, according to the Accountant-General of the Federation, Shamseldeen Ogunjimi.
Ogunjimi made this known through Rita Okolie, director of federation account, during the Federation Account Allocation Committee (FAAC) post-mortem subcommittee retreat held in Enugu.
The retreat, which brought together key fiscal stakeholders, focused on the theme “Assessing Fiscal and Sectoral Policies for Closing Revenue Leakage in the Federation Account.”
He explained that the rise in revenue was driven by ongoing fiscal reforms introduced by the administration of President Bola Tinubu, adding that the improvement reflects a gradual shift toward a more stable and diversified economy that is less reliant on fluctuating oil earnings.
According to him, the federation account remains the backbone of Nigeria’s public finance system, serving as the main pool through which national revenue is collected and shared among the federal, state, and local governments.
However, Ogunjimi warned that persistent challenges such as weak revenue collection, unstable oil income, poor performance of non-oil revenue sources, and systemic financial leakages continue to affect the credibility and efficiency of the account.
He noted that revenue leakages are not vague or abstract problems but measurable losses that occur during collection, remittance, and expenditure monitoring.
He stressed that these losses directly affect national development, saying, “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.”
Also speaking at the event, Minister of Finance (State), Doris Uzoka-Anite, assured participants of the government’s commitment to fairness, accountability, and transparency in the management of the federation account.
Represented by Ali Mohammed, director of home finance, she expressed optimism that the retreat would strengthen policies and systems that ensure public funds are managed efficiently for the benefit of Nigerians.
Earlier, Chairman of Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mohammed Shehu, noted that the volume of funds available for distribution among the three tiers of government is increasingly shaped by economic performance, fiscal reforms, legislative changes, and financing strategies.
Represented by Eyo-Nsa Whiley, vice-chairman of the FAAC post-mortem subcommittee, he added that sound economic policies and institutional reforms remain key to sustaining revenue growth and national development.
