A disagreement over the sharing of N1.969 trillion federation revenue has stalled disbursement to the three tiers of government for the second consecutive week, raising concerns over delayed January salary payments for civil and public servants across parts of the country.
Findings indicate that the impasse followed the January 20, 2026 meeting of the Federation Account Allocation Committee (FAAC) in Abuja, where the funds were expected to be released shortly after deliberations. Traditionally, salaries are paid within five days of FAAC meetings, but this month’s allocation has remained stuck.
Sources familiar with the development said state Commissioners of Finance, who represent the states at FAAC, rejected the amount presented for sharing, arguing that it did not reflect actual revenue accrued in December 2025.
“The states felt the money brought forward did not match what was realised in December, and that is why they did not agree to the distribution,” a source explained.
To resolve the stalemate, a fresh FAAC meeting has been scheduled for Monday, with expectations that the figures may be reviewed to meet the concerns of state governments.
At the January meeting, FAAC proposed N1.969 trillion for distribution from a total revenue of N2.585 trillion recorded in December 2025. The session was chaired by the Minister of State for Finance, Dr. Doris Uzoka-Anite.
A breakdown of the revenue showed that N846.5 billion was generated from Value Added Tax, N1.631 trillion from other statutory sources, and N38.1 billion from the Electronic Money Transfer Levy.
Under the proposed sharing formula, the Federal Government was to receive N653.5 billion, states and the Federal Capital Territory N706.4 billion, while the 774 local government councils were allocated N513.2 billion. Oil-producing states were also to receive N96 billion as 13 per cent derivation from oil revenue.
The delay has heightened anxiety among state governments, many of which depend heavily on monthly FAAC allocations to fund operations. About 31 states reportedly rely on federation revenue for at least 80 per cent of their monthly expenditure, including workers’ salaries and essential services.
“Without this allocation, it becomes very difficult to meet our obligations, especially salary payments and essential services,” a state official, who requested anonymity, said.
As workers await their January pay, attention is now fixed on the next FAAC meeting, where stakeholders are expected to break the deadlock and authorise the release of the long-delayed funds.