-
FAAC revenue distribution for January stalled as states reject ₦1.9trn allocation.
-
States demand higher FAAC payout, citing stronger December 2025 accruals.
-
Delay hits salaries, stalling January payments to public sector workers.
The distribution of January federation revenue has been stalled following disagreements between states and the federal authorities over the amount to be shared at the Federation Accounts Allocation Committee (FAAC) meeting.
Findings revealed that about ₦1.969 trillion was proposed for distribution at the FAAC meeting held on January 20, but state governments, through their Commissioners of Finance, rejected the figure, insisting it was inadequate.
ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!
FAAC typically meets toward the end of each month to review revenue collected in the preceding month and share it among the federal, state and local governments to fund current expenditures. However, the disagreement has delayed the sharing exercise for over two weeks.
READ ALSO: States Lean on FAAC, Borrowing to Fund Ambitious 2026 Budgets
Investigations showed that the states argued that the proposed amount did not reflect the revenue realities of December 2025 and therefore demanded a higher sum for distribution.
The stalemate has reportedly affected the payment of January salaries to public sector workers across the country.
Although disputes over FAAC allocations are not uncommon, such disagreements are usually resolved within days. A senior official at the Office of the Accountant-General of the Federation (OAGF) told Vanguard that the issue is expected to be resolved early next week.
FAAC comprises representatives of the Federal Ministry of Finance, the OAGF, key revenue-generating agencies including the Nigerian National Petroleum Company Limited (NNPC Ltd), Nigeria Customs Service and the Federal Inland Revenue Service, as well as Commissioners of Finance representing the states and officials from local governments.