FAAC Deadlock: States reject ₦1.9tn, January revenue allocation stalled

Story by Martha Gwary

Disagreement over the amount of revenue to be shared among the three tiers of government has stalled the distribution of January federation allocations for more than two weeks.

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Findings revealed that about ₦1.969 trillion was scheduled for distribution at the Federation Accounts Allocation Committee (FAAC) meeting held on January 20. However, state governments, through their Commissioners of Finance, rejected the figure, insisting that a higher sum should be shared.

FAAC traditionally meets towards the end of the second or third week of every month to review revenue collected in the preceding month and allocate funds to the federal, state and local governments to meet current expenditure obligations.

The impasse has resulted in delays in the payment of January salaries for public sector workers across several states.

The Commissioners of Finance, who represent their respective states at FAAC, opposed the proposed distribution on the grounds that it was insufficient and did not reflect actual revenue accruals for December 2025.

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While disagreements over monthly allocations at FAAC are not unusual, such disputes have in the past been resolved within a few days, allowing funds to be released promptly.

An official of the Office of the Accountant-General of the Federation (OAGF), who spoke on condition of anonymity, said efforts were ongoing to resolve the matter, expressing optimism that the deadlock would be settled early next week.

READ ALSO: States’ monthly federal allocations rise by 40% as FAAC hits N4.5trn

FAAC comprises officials from the Federal Ministry of Finance, the OAGF, and representatives of key revenue-generating agencies, including the Nigerian National Petroleum Company Limited (NNPCL), the Nigeria Customs Service, and the Nigerian Revenue Service. It also includes Commissioners of Finance representing the states and officials representing local government areas.

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