Nigeria’s Federation Account has received ₦1.49 trillion in reconciled arrears from revenue-generating agencies in the first half of 2025, fresh data from the Federation Accounts Allocation Committee (FAAC) has revealed.
According to the FAAC Post-Mortem Sub-Committee (PMSC), which reviews inflows from statutory agencies, the remittances came from reconciled arrears previously owed by the Nigerian National Petroleum Company Limited (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Federal Inland Revenue Service (FIRS), and other agencies.
Between January and June 2025, the arrears totalled exactly ₦1,490,778,578,480.61, averaging over ₦248 billion monthly and providing additional fiscal space at a time of growing debt service obligations.
January recorded the highest inflow at ₦367.37 billion, followed by ₦227.15 billion in February, ₦175.99 billion in March, and ₦259.85 billion in April. The trend slowed to ₦247.05 billion in May and ₦213.37 billion in June.
For June alone, FAAC confirmed a reconciled arrears payment of $41.07 million (₦213.37 billion at the official exchange rate of ₦1,528.705/$) alongside local currency receipts of ₦150.59 billion. This comprised $5.19 million (₦7.92 billion) from FIRS in Petroleum Profit Tax arrears, $35.43 million (₦54.15 billion) from NUPRC’s royalty arrears, $459,226 (₦702.9 million) from NNPC’s joint venture royalty, and ₦150.59 billion from NUPRC royalty receipts.
Despite the inflows, the report warned that much larger sums remain outstanding. At an inter-agency reconciliation meeting in August 2025, unresolved arrears were put at $78.23 million and ₦1.72 trillion from FIRS/NNPC, alongside ₦2.32 trillion owed by other agencies—bringing the outstanding figure to about ₦6.75 trillion.
Of this, NNPC alone accounted for $11.24 million and ₦164.7 billion, while NUPRC/NNPC jointly owed $66.99 million. Additional liabilities included ₦1.72 trillion linked to FIRS/NNPC reconciliation and ₦2.03 trillion from other statutory bodies.
The document further disclosed unresolved arrears of about ₦2.54 trillion dating back before June 2023. These older balances have been referred to the Stakeholders’ Alignment Committee and the FAAC Sub-Committee for further reconciliation, pending a technical review by the Ministry of Finance.
The reconciliation exercise, officials noted, is part of ongoing efforts to strengthen accountability in public finance and close loopholes in agency remittances.
For years, FAAC allocations to the federal, state, and local governments have been hampered by underpayments, with NNPC frequently accused of withholding funds or delaying transfers. Tensions over its revenue declarations—especially deductions for subsidies, pipeline repairs, and joint venture obligations—have repeatedly stalled FAAC meetings.
The problem escalated in 2022 and 2023, when large arrears piled up as unremitted balances. The current reconciliation drive is aimed at clearing the backlog and ensuring revenues due to the Federation are fully captured and distributed among the three tiers of government.
