Nigeria’s Federation Account Inflows Hit N35 Trillion in 2025
- Inflows into Nigeria’s federation account rose to over N35 trillion in 2025, up from N27 trillion in 2024
- The accountant-general attributed the growth to fiscal reforms under President Bola Tinubu’s administration
- Revenue losses were described as occurring mainly at collection, remittance and expenditure stages
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Nigeria’s federation account recorded a significant rise in inflows in 2025, reaching over N35 trillion, according to the accountant-general of the federation, Shamseldeen Ogunjimi.
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Ogunjimi said the figure represents an increase of about N8 trillion, or 29.63%, compared with the N27 trillion recorded in 2024. He attributed the growth to fiscal reforms introduced by the administration of President Bola Tinubu.
The accountant-general, who was represented by Rita Okolie, director of federation account, spoke at the Federation Account Allocation Committee (FAAC) post-mortem subcommittee retreat held in Enugu on Monday. The retreat focused on assessing fiscal and sectoral policies aimed at closing revenue leakages in the federation account.
Nigeria’s economy less-dependent on oil
According to Ogunjimi, the improvement in inflows signals progress towards building a more resilient Nigerian economy that is less dependent on the volatility of oil revenues.
He described the federation account as the fiscal lifeline of Nigeria’s federal system, noting that it serves as the primary channel for mobilising, pooling and distributing national resources among the federal, state and local governments.
Leakages poor revenue impact federation account
However, he warned that persistent challenges such as revenue shortfalls, volatility in oil receipts, weak non-oil revenue performance and systemic leakages continue to undermine the efficiency and credibility of the federation account.
Ogunjimi added that revenue leakages are not abstract issues but specific and measurable losses that occur at the points of collection, remittance and expenditure oversight. He said such losses reduce development opportunities and weaken public trust, stressing that every naira lost translates into delayed or abandoned public services.
Also speaking at the event, the minister of state for finance, Doris Uzoka-Anite, assured participants of the federal government’s commitment to equity, fairness and justice in the management of the federation account. She was represented by Ali Mohammed, director of home finance.
Uzoka-Anite expressed confidence that the retreat’s deliberations would strengthen existing mechanisms and improve how the federation account serves Nigerians.
Earlier, the chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mohammed Shehu, said the resources available for distribution among the three tiers of government are increasingly shaped by economic performance and a wide range of fiscal, sectoral and legislative reforms.
Shehu, represented by Eyo-Nsa Whiley, vice-chairman of the FAAC post-mortem subcommittee, added that economic instruments and financing arrangements also play a growing role in influencing federation account revenues.
Source: Getty Images
Tinubu announces increased allocation to states, LGs
Legit.ng earlier reported that President Bola Tinubu announced increased federal allocations for states and local governments to enhance services and governance in the country.
The president emphasised grassroots development as key to tackling insecurity and national crises amid the Supreme Court ruling on local government autonomy.
Nigerians expressed scepticism over local governments' utilisation of the funds and compliance issues at the grassroots level.
Source: Legit.ng
