Nigeria’s Federation Account received N1.49 trillion in the first half of 2025 from arrears reconciled and remitted by key revenue-generating agencies, fresh data from the Federation Accounts Allocation Committee (FAAC) has shown.
The FAAC Post-Mortem Sub-Committee (PMSC), which tracks inflows from agencies, reported that the remittances between January and June came from outstanding 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 statutory bodies.
According to the report, the cumulative inflows amounted to N1,490,778,578,480.61 — averaging over N248 billion monthly — offering fiscal relief to the government amid rising debt service obligations.
Breakdown of the figures showed that January recorded the highest arrears payment at N367.37 billion, followed by N227.15 billion in February, N175.99 billion in March, N259.85 billion in April, N247.05 billion in May, and N213.37 billion in June.
For June 2025 specifically, FAAC recorded $41.07 million (N213.37 billion at the CBN exchange rate of N1,528.705/$) alongside a local currency reconciliation of N150.59 billion. This included $5.19 million (N7.92 billion) from FIRS as Petroleum Profit Tax arrears, $35.43 million (N54.15 billion) from NUPRC’s royalty arrears, $459,226 (N702.9 million) from NNPC joint venture royalties, and N150.59 billion in other royalty receipts from NUPRC.
Despite the inflows, the report warned that far larger sums remain unsettled. At an August 2025 inter-agency reconciliation meeting, outstanding arrears were estimated at $78.23 million and N6.75 trillion. Of this figure, NNPC accounted for $11.24 million and N164.7 billion, while NUPRC/NNPC jointly owed $66.99 million. The FIRS/NNPC reconciliation added N1.72 trillion, and other agencies were linked to another N2.03 trillion.
Additionally, about N2.54 trillion in arrears dating back before June 2023 remains unresolved and has been referred to the Stakeholders Alignment Committee for further review.
“Members should note that the above outstanding amounts are still being reconciled at the monthly meetings between the agencies and the Sub-Committee. Furthermore, the sum of N2.53 trillion outstanding payments from before June 2023 were referred to the Stakeholders Alignment Committee, and the Sub-Committee awaits the outcome of the technical reconciliation meeting conveyed by the Ministry of Finance,” the report stated.
The reconciliation is part of government efforts to improve transparency in public finance and address underpayments by revenue agencies. For years, FAAC allocations to federal, state, and local governments have been constrained by disputes over remittances, particularly with NNPC, which has often been accused of withholding funds or making delayed payments.
The exercise, according to FAAC, is designed to clear backlogs from 2022 and 2023, when unremitted arrears reached record highs, and ensure that revenues due to the Federation are properly captured and distributed among the three tiers of government.
