The public debate on government finances in Nigeria has once again been clouded by confusion, little knowledge and deliberate misrepresentation. At the heart of the current controversy is a misunderstanding of the difference between the total revenues generated by government agencies and the federal government's actual share.
The confusion is heightened by commentators who should know better and by a media ecosystem that is driven by noise rather than nuance. As a result, President Bola Tinubu's statements on revenue performance and the comments of the Minister of Finance and Coordinating Minister of Economy, Mr. Wale Edun, have been wrongly described as contradictory, when in fact they address two completely different fiscal realities.
Some persons are deliberately trying to malign the matter by giving misleading information to the public. One wonders why anyone would enjoy waging such an information war on the public.
Sadly, it appears that the mainstream media, which should be helping to frame rational and meaningful public discussion, is increasingly relying on social media for stories. They are more interested in stoking popular sentiment for clicks and views rather than clarity, even if false or absurd. The situation is even worse on television and radio, where self-appointed experts are given ample time to spread ignorance. These individuals position themselves as public affairs analysts, often lacking the requisite expertise.
Last September, President Tinubu said the federal government had achieved its non-oil revenue target for 2025 by August. He made the statement during a meeting with members of the defunct Congress for Progressive Change (CPC) and the Buhari Organization (TBO) led by former Nasarawa State Governor, Senator Tanko Al-Makura.
As of August, the Nigeria Revenue Service had collected over ₦22 trillion in taxes, while the Nigeria Customs Service had generated over ₦5 trillion in taxes. The NNPC also reported several trillion naira in remittances to the government. These figures also did not include receipts from other revenue-generating agencies such as the Nigerian Ports Authority (NPA), the Nigerian Maritime Administration and Safety Agency (NIMASA), the Nigerian Communications Commission (NCC), and others.
However, during a public hearing at the National Assembly late last year, Edun said the federal government could not adequately finance its capital budget because it did not have enough money. Some analysts and opposition figures, due to poor understanding of the minister's statement, took it as a talking point to misinform Nigerians. In fact, President Tinubu was right, and Minister Edun did not contradict him.
Here are the facts:
President Tinubu was right in saying that revenue targets were met as revenue generating agencies exceeded their 2025 targets. Meeting the revenue target does not mean that the government has all the money it needs. No government in the world, including the richest countries, has all the money it needs. This is why most governments run in losses. Deficit is the difference between revenue and expenditure, which is usually financed through borrowing and other non-revenue sources. The situation in Nigeria is like that of the man who needs ₦10 million annually to meet his personal and family obligations but earns ₦3 million. If he aims to increase his income to ₦6 million and succeeds, he has met his goal but is still short of his needs.
All revenue generated by agencies such as Nigeria Revenue Service, NNPC, NIMASA, NPA, Customs, NCC, NMDPRA and NUPRC is paid into the Federation Account. The money in the Federation Account does not belong solely to the federal government. It is a pool from which the federal government, state and local governments draw their statutory allocations.
When Mr Edun talked about P10 trillion as federal government revenue in 2025, he was referring to the federal government's share from the Federation Account – the actual money available for federal spending.
The money being spent by the 36 states, the FCT and 774 local governments is mainly derived from the Federation Account through the monthly FAAC allocation, as stipulated by the 1999 Constitution (as amended). Apart from Lagos State, Rivers State, the Federal Capital Territory and possibly two other states, 32 states and 774 local governments have more than 90 per cent of their revenues coming from their share of the federation account. The internally generated revenue of many states and local governments, as reflected in their 2026 budget proposals, is less than 10 percent of their planned expenditures for the year. Therefore, the revenue collected by the Union goes into the account of the Union, thereby essentially running the entire machinery of the three levels of government. It is very important that this distinction be made for a better public understanding of how our government is funded.
While it is the job of the opposition and civil society to criticize the government and hold it accountable, the media should act as a buffer and guardrail in promoting honest and open public dialogue. As the watchdog and moral guardian of the society, the media should frame the national debate in such a way that the public is properly educated and enlightened. An informed citizenry is essential to sustain democracy and promote good governance. Democracy is endangered when fraudsters are given unfettered access to microphones to spread lies and misrepresent facts.
Ajayi is Senior Special Assistant to President Tinubu on Media and Publicity
