Federation Account Hits N23trn in 10 Months, RMAFC Declares
- The federal government says inflows into the federation account have risen over the past three years
- RMAFC disclosed that accruals reached N23.06 trillion in the first 10 months of 2025
- Officials attributed the growth to fiscal reforms, improved tracking, stronger audits and digital monitoring
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The federal government has reported a steady rise in inflows into the Federation Account, noting that inflows for the first 10 months of 2025, from January to October, had already reached N23.06 trillion.
Chairman of the Revenue Mobilisation and Fiscal Commission (RMAFC), Dr Mohammed Shehu, disclosed this at a two-day National Stakeholders’ Discourse on Enhancing Fiscal Efficiency and Revenue Growth under the Nigeria Tax Act, 2025, held in Abuja.
Shehu noted that the surge in inflows has been a consistent trend for the past three years, attributing the growth to fiscal reforms, improved coordination among revenue agencies and stronger compliance measures.
Source: Getty Images
He disclosed that the total gross accruals into the Federation Account stood at N11.93 trillion in 2023 and increased to N21.43 trillion in 2024.
Shehu explained that the sustained increase was driven by fiscal reforms, improved tracking and coordination among revenue-generating agencies, stronger audits, digital monitoring systems and better enforcement.
He said these measures have helped strengthen fiscal discipline and expand the revenue pool available for distribution to the federal, state and local governments.
He noted that the trend signals progress towards a more diversified and sustainable public finance system, with reduced reliance on oil revenue.
According to him, Nigeria’s heavy dependence on oil in the past exposed the economy to boom-and-bust cycles caused by fluctuating global prices, making long-term fiscal planning difficult.
Nigeria's rising debt burden
Shehu also highlighted the burden of rising debt-service obligations, which he said now consume a significant portion of government revenue and limit public investment across all levels of government.
Speaking on the Nigeria Tax Act, 2025, he said the legislation was timely and necessary, noting that it harmonises previously fragmented tax laws into a single framework, The Sun reported.
He added that the Act removes duplication and outdated provisions while improving the ease of doing business.
The RMAFC chairman said the law, which is expected to take effect in January 2026, will reduce compliance burdens, create a more predictable fiscal environment and eliminate regional disparities in tax administration.
He said the stakeholders’ forum was convened to promote a deeper understanding of the Act’s implementation, including engagement with organised labour.
Earlier, Chairman of the Fiscal Efficiency and Budget Committee, Desmond Akawor, described the Nigeria Tax Act as a major reform designed to modernise tax administration, strengthen compliance and close revenue leakages.
He stressed that cooperation among the government, the private sector and other stakeholders is critical to the success of the reforms, PUNCH reported.
In his presentation, Chairman of the Tax Reform Committee, Professor Taiwo Oyedele, said Nigeria needs to streamline its tax system by consolidating more than 60 existing taxes and levies.
He argued that efficiently collecting a few taxes is better than poorly administering many, noting that multiple taxes often encourage corruption.
Oyedele added that under the new Act, basic consumption items will not be taxed and investors will be exempt from capital gains tax, as part of efforts to support growth and improve compliance.
Source: Getty Images
Concerns as Nigerians prepare for new tax regime
Legit.ng earlier reported that there have been concerns about Nigeria's tax law amid misinformation and manipulation of the facts.
Oyeleye earlier said there is no need to panic, clarifying that the majority of Nigerian stock market investors are exempt from the capital gains tax.
The Federal Inland Revenue Service (FIRS) also stated that, in spite of concerns about data safety as it partners with a French tax agency, the personal information of Nigerians is safe.
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Source: Legit.ng
