FAAC: All Revenue-generating Agencies Posted Sub 40% Performance in December

Emmanuel Addeh in Abuja

All the federal government’s major revenue-generating agencies fell short of their expected contributions to the Federation Account in December 2025, according to details presented at the February meeting of the Federation Account Allocation Committee (FAAC).

An analysis of the Central Bank of Nigeria (CBN), Federation Account Component Statement for the period showed that none of the agencies met up to 40 per cent of their expected performance benchmarks, with the Nigerian National Petroleum Company Limited (NNPC Ltd) recording the weakest remittance level.

The document, reviewed at the FAAC Post-Mortem Sub-Committee (PMSC), indicated that the agencies collectively generated N2.585 trillion for the federation account during the month, but their individual performances were significantly below optimal expectations.

According to the report, NNPC posted the lowest performance level at just 0.38 per cent of expected revenue, remitting N9.79 billion into the CBN component statement in December.

The extremely low contribution from the national oil company stood out sharply when compared with other agencies, despite the fact that oil remains the backbone of Nigeria’s revenue structure.

Besides, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recorded a 22.94 per cent performance, remitting N593.11 billion into the federation account for the month.

Although the amount represented one of the larger contributions in absolute terms, the percentage performance showed that the upstream regulator still fell significantly short of its expected revenue potential for the period.

Similarly, the Nigeria Revenue Service (NRS) revenue contribution from Value Added Tax (VAT), amounted to N913.96 billion, representing 35.35 per cent performance.

However, a THISDAY analysis showed that even this level of remittance underscored the broader trend of underperformance across the federal government’s revenue collection architecture.

Despite being the highest contributor among the listed categories, the percentage still reflected a shortfall relative to the anticipated remittance levels.

Also, collections from the NRS EMTL Account (Electronic Money Transfer Levy) were significantly smaller, standing at N39.91 billion, representing 1.54 per cent performance.

In the same vein, the Nigeria Customs Service (NCS) generated N342.94 billion, translating to 13.26 per cent performance, another indication that trade-related revenues also failed to reach projected levels in December.

Customs revenues are typically expected to be buoyed by import duties and other trade-related charges, but the data showed that collections were still below expectations for the month under review.

Overall, the figures presented at the FAAC meeting showed that the agencies’ combined remittances added up to N2,585,605,112,548.22, which was the amount available for disbursement to the federal, state and local governments for the period.

The data underscored persistent concerns among fiscal authorities over the efficiency and transparency of revenue collection across federal institutions.

The particularly weak showing by NNPC, which contributed less than 1 per cent in performance terms, may further intensify scrutiny of the national oil company’s remittance framework under the Petroleum Industry Act (PIA).

Under the PIA structure, NNPC operates as a commercial entity and is expected to remit revenues to the federation after deducting operational costs and other statutory obligations. However, the extremely low remittance performance in December raises questions about revenue flows from Nigeria’s oil and gas sector during the period.

Beyond oil revenues, the figures also highlighted the continuing reliance on non-oil sources such as VAT collections to support federation revenues. The NRS VAT component alone accounted for over 35 per cent of the total contributions captured in the FAAC report, making it the single largest revenue stream among the listed agencies.

Besides, the report also provided additional insights into other revenue-related accounts linked to the federation. According to the FAAC documentation, Federal Ministry of Solid Minerals Development (FMSMD) collections for December 2025 stood at N4.17 billion. In addition, the balance in the Solid Minerals Account carried over from November 2025 and yet to be shared stood at N68.14 billion.

The December performance data presented at FAAC has concerns, as all the listed revenue-generating agencies recorded levels well below their expected potential. With federation revenues forming the backbone of monthly allocations to the three tiers of government, persistent underperformance by key revenue agencies could continue to exert pressure on public finances.