A renowned economist, Prof. Ken Ife, has warned that the delay in releasing the communiqué of the January meeting of the Federation Account Allocation Committee (FAAC) could pose serious fiscal challenges for governments at all levels.
Ife, who is the Lead Consultant on Private Sector Development to the ECOWAS Commission, said this in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja.
NAN reports that the 2026 maiden FAAC meeting was held on Jan. 20, but no official communiqué has been issued more than a week after the meeting.
According to Ife, the delay in revenue allocation has wide-ranging implications for the Federal, State and Local Governments, particularly in meeting financial obligations.
“The postponement of revenue sharing creates a ripple effect. It delays salary payments to workers and affects payments to contractors, which in turn reduces productivity and overall economic activities at the sub-national level,” he said.
He noted that many states and local governments depend heavily on monthly FAAC allocations to finance development projects and meet recurrent expenditures, including salaries.
“This situation could result in severe liquidity pressure for sub-national governments that lack alternative revenue buffers,” he added.
Ife attributed the delay to possible disagreements over revenue remittances into the federation account, especially by the Nigerian National Petroleum Company Limited (NNPC Ltd.).
He also pointed to administrative challenges arising from the implementation of the Fiscal Reform Act 2025, as well as unresolved fiscal policy issues, including the enforcement of the Supreme Court judgment on local government fiscal autonomy.
“The continued inability of some local governments to meet requirements for direct disbursements, such as opening designated bank accounts, has forced funds to be routed through state governments, thereby undermining the intended autonomy,” he said.
The economist further cited delays in the reconciliation and conclusion of financial records on platforms such as the Government Integrated Financial Management Information System (GIFMIS) by the Office of the Accountant-General of the Federation (OAGF).
He added that disputes between state governments and the NNPC over oil revenue remittances, particularly during periods of low oil production or high operational costs, could also be contributing factors.
Ife also raised concerns over what he described as the arbitrary waiver of huge NNPC financial liabilities to the federation account without adequate consultation with sub-national governments.
He stressed that prolonged delays in releasing the FAAC communiqué could weaken fiscal planning and undermine economic stability across the country.
