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Ogunjimi links growth to fiscal reforms, warns revenue leakages still threaten efficiency and public trust….

Accountant-General of the Federation, Shamseldeen Ogunjimi, says total inflows into the Federation Account climbed to 35 trillion naira in 2025, marking a significant increase from the 27 trillion naira recorded in 2024.

>span class="s1">Ogunjimi, who was represented by Rita Okolie, Director of the Federation Account, disclosed this on Monday during the Federation Account Allocation Committee (FAAC) Post-Mortem Sub-Committee retreat held in Enugu.

>span class="s1">According to the Accountant-General, the increase in inflows reflects the positive outcomes of fiscal reforms introduced by the administration of President Bola Tinubu, as well as progress toward building a more resilient economy less exposed to the volatility of oil revenue.

He described the Federation Account as the fiscal backbone of Nigeria’s federal system, serving as the main platform through which national revenues are collected, pooled, and shared among the three tiers of government.

However, Ogunjimi cautioned that persistent challenges continue to undermine its effectiveness, including revenue shortfalls, fluctuations in oil receipts, weak non-oil revenue performance, and systemic leakages.

“The Federation Account remains the fiscal lifeline of the federal system, but persistent revenue shortfalls, volatility in oil receipts, suboptimal non-oil revenue performance, and systemic leakages continue to weaken its efficiency, predictability, and credibility,” he said.

He noted that the timing of the retreat was critical, given the need to strengthen Nigeria’s fiscal resilience, improve revenue integrity, and enhance institutional accountability.

Highlighting the progress made, he said, “Our recent progress is undeniable. In the year 2025, inflows into the Federation Account rose above 35 trillion naira, a significant jump from 27 trillion naira in 2024.”

>span class="s1">According to him, these leakages represent lost opportunities for national development and weaken public confidence in government institutions.

“They are lost opportunities for development, weakened public trust, and constraints on our collective aspiration for a stronger and more prosperous Nigeria. Every naira lost is a school not built, a road unfinished, or a vital service delayed,” he said.

Also speaking, Minister of State for Finance, Doris Uzoka-Anite, assured stakeholders of continued efforts to promote fairness, equity, and transparency in the management of the Federation Account. She was represented at the event by Ali Mohammed, Director of Home Finance, who expressed confidence that the discussions would help strengthen the mechanisms that ensure the account serves the interests of Nigerians more effectively.

Earlier, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mohammed Shehu, said the volume of funds available for distribution among the three tiers of government is increasingly shaped by broader economic performance and evolving fiscal and sectoral policies.

Represented by Eyo-Nsa Whiley, Vice-Chairman of the FAAC Post-Mortem Sub-Committee, Shehu noted that legislative reforms, economic instruments, and financing structures continue to play a growing role in determining the size and stability of distributable revenue across the federation.