By Eteteonline
At the Federation Accounts Allocation Committee (FAAC) meeting scheduled recently, there was no consensus on the revenue amount to distribute from the federation account for January 2026. States rejected the recommended figures brought forward for distribution.
The Commissioners of Finance, representing state governments, contended that the N1.969 trillion suggested for allocation was too low and did not reflect real revenue accruals. They consequently refused to accept it and did not allow dissemination.
Because of the standoff, monthly income sharing has been delayed; the FAAC distribution, generally done each month, has not been completed, impacting government operations.
This hold-up has delayed payment of January salaries for many federal, state, and local government workers across Nigeria. Reports depict the situation as a standoff over approximately N2 trillion, underscoring how dependent states are on FAAC transfers.
States under FAAC are asking for a bigger distributable amount, stating the calculations do not match actual revenue inflows, notably for December 2025. Such complaints are not exceptional, but in earlier situations, the concerns have normally been handled and cash divided within a few days. The dispute has prolonged this time, raising concerns about potential fiscal pressures.
A representative from the Office of the Accountant-General indicated they expect the situation to be addressed early this week, and the cash will be delivered then.
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