FAAC Reconciliation: NNPC, FIRS, Others Remit N1.49 Trillion Arrears to Federation in Six Months

In the first half of 2025, the Federation Account received a significant inflow of N1.49 trillion in reconciled arrears from key revenue-generating agencies, including the NNPC, NUPRC, and FIRS. A report from the FAAC PMSC revealed that the cumulative inflow from January to June 2025 averaged N248 billion monthly, providing additional fiscal space for the government.

The highest arrears payment was recorded in January at N248 billion, followed by February, March, and April. Despite this positive development, a much larger sum of outstanding arrears remains unresolved, with ongoing reconciliation efforts to address the backlog.

The reconciliation exercise is part of the government's efforts to improve accountability in the management of public finances and ensure that revenue due to the Federation is properly distributed among the federal, state, and local governments.