Eight days after the January meeting of the Federation Account Allocation Committee (FAAC), the details of revenue shared among the three tiers of government are yet to be released, raising concerns among analysts and stakeholders.
The Minister of State for Finance, Dr Doris Uzoka-Anite, had on January 21 announced that the first FAAC meeting of 2026 was held, sharing photographs from the session on her official X handle.
However, the communiqué traditionally issued after each meeting — detailing the amounts distributed to the Federal Government, states and local governments — has not been made public.
Under the existing FAAC revenue-sharing formula, the Federal Government receives 52.68 per cent, states get 26.72 per cent, while local governments receive 20.6 per cent. Oil-producing states are also entitled to an additional 13 per cent derivation fund.
FAAC allocations, which are disbursed monthly to the 36 states and 774 local government areas, are a major source of funding for salaries, infrastructure and other recurrent expenditures.
Financial analysts say the absence of the January 2026 communiqué is unusual and has generated uncertainty over whether the distributable revenue has been shared.
Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co., said the delay could be due to disagreements over revenue components or unresolved reconciliation issues.
“Oftentimes, delays like this arise when there are disagreements or issues that need to be reconciled. But it is strange that no communiqué has been issued at all,” Olubunmi said.
He noted that the lack of official communication from relevant authorities has left the public uncertain about the status of revenue sharing, warning that prolonged delays could affect salary payments at the sub-national level if funds have not been disbursed.
“It is important for the authorities to inform the public on what is going on, whether the revenue has been shared or if discussions are still ongoing,” he added.
Also commenting on the issue, Prof. Ken Ife, a development economist and lead consultant on private sector development to the ECOWAS Commission, said the delay could pose fiscal challenges for states and local governments.
Ife said postponement of FAAC disbursements often creates a ripple effect, delaying salary payments, stalling contractor obligations and reducing overall economic activity at the sub-national level.
“This can lead to liquidity pressures, especially as many states rely heavily on FAAC allocations to fund development projects and meet salary obligations,” he said.
According to him, the delay may be linked to disputes over revenue remittances to the federation account, particularly from the Nigerian National Petroleum Company (NNPC) Limited, as well as administrative bottlenecks arising from the implementation of the Fiscal Reform Act 2025.
Ife also cited ongoing issues related to the implementation of the Supreme Court ruling on local government financial autonomy, noting that some councils have yet to meet requirements for direct disbursement, such as providing designated bank accounts.
Other possible factors, he said, include unresolved entries on the Government Integrated Financial Management Information System (GIFMIS) and disputes between state governments and the NNPC over oil revenue remittances during periods of reduced production or high operational costs.
He further recalled that on December 29, 2025, President Bola Tinubu approved the cancellation of about $1.42 billion and N5.57 trillion in outstanding obligations owed by the NNPC to FAAC, a move that may also have implications for revenue reconciliation.
Analysts have urged the relevant authorities to clarify the reasons for the delay and take steps to ensure timely release of FAAC communiqués in the future to promote transparency and fiscal planning.
