FAAC reconciliation adds N2.36tn to Federation Account in 9 months

The Federation Account received a major boost as FAAC confirmed that N2.359tn in outstanding arrears was recovered and paid between January and September 2025.

The reconciled inflows—sourced from crude sales, royalty arrears, domestic gas payments and other under-remitted revenues—helped ease pressure on monthly allocations amid ongoing fiscal constraints.

The November reconciliation meeting also reviewed disputed NNPC remittances, Frontier Exploration Fund spending, outstanding obligations to NUPRC and FIRS, performance of revenue agencies, balances in multiple reserve accounts and tax credit deductions under the Road Infrastructure Tax Credit Scheme.

The September reconciliation alone brought in N370.43bn, including $52.95m from crude-related arrears. Monthly reconciliations fluctuated due to the varying nature of arrears, with the nine-month total marking one of FAAC’s highest recent recoveries.

NNPC and Periscope Consulting remained at odds over an alleged $42.37bn under-remittance, prompting a directive for further joint reconciliation. FAAC also asked NNPC to provide basin-specific details on Frontier Exploration spending from 2008 to 2024, noting gaps in its submissions.

The committee flagged N2.03tn owed to NUPRC and FIRS for June–December 2023 and highlighted new outstanding amounts of $68.98m and N1.03tn still under review.

It also examined deductions under the Road Infrastructure Tax Credit Scheme, where $577.6m and N822.3bn had been utilised, with several companies yet to fully respond to FAAC’s requests for clarification.

Overall, revenue inflows from NNPC, NUPRC, FIRS and Customs totalled N2.128tn in September, with FIRS contributing more than 43 per cent.

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