Disagreement among the three tiers of government over the size of funds to be shared has stalled the distribution of January federation revenue by the Federation Accounts Allocation Committee (FAAC).
Findings showed that about N1.969 trillion was proposed for distribution at the FAAC meeting held around Jan. 20, but state governments, through their Commissioners of Finance, rejected the amount, insisting it fell short of expected accruals.
The disagreement has reportedly delayed the sharing of funds for over two weeks, with knock-on effects on the payment of January salaries to public sector workers in some states.
FAAC usually meets toward the end of every month to review revenue collected in the preceding month and distribute it among the Federal Government, states and local government councils for current expenditures.
According to investigations, the state commissioners argued that the proposed figure did not reflect revenue performance for December 2025 and therefore demanded a higher amount for distribution.
Although disputes over monthly allocations are not unusual, sources noted that such issues are typically resolved within a few days, allowing funds to be shared without prolonged delays.
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 impasse would be settled early next week.
FAAC is made up of representatives of the Federal Ministry of Finance, the OAGF, revenue-generating agencies such as the Nigerian National Petroleum Company Ltd., the Nigeria Customs Service and the Federal Inland Revenue Service, as well as Commissioners of Finance representing the states and officials of local government councils.
Earlier, FAAC had shared N903.4 billion among the Federal Government, states and local governments, but the current deadlock has raised concerns over cash flow and fiscal planning at subnational levels.
