The distribution of January revenue from the Federation Account has been stalled for more than two weeks following a disagreement between state governments and the Federal Government over the amount proposed for sharing.
According to Vanguard News, the stalemate emerged after states rejected the ₦1.9 trillion revenue figure presented at the January meeting of the Federation Accounts Allocation Committee (FAAC), insisting that the amount does not reflect actual revenue accrued to the federation.
State Commissioners of Finance reportedly faulted the figure, arguing that revenues generated in December 2025 were not fully captured, leading to sharp disagreement during the meeting and preventing the conclusion of the allocation process.
The deadlock has halted the statutory sharing of funds among the federal, state and local governments, raising concerns over cash flow challenges, especially for states already struggling to meet recurrent obligations, including salary payments.
FAAC, which meets monthly to review federation revenues and allocate funds, has been unable to complete the January distribution due to the unresolved dispute.
A source at the Office of the Accountant-General of the Federation (OAGF) told Vanguard that efforts are ongoing to resolve the differences, expressing optimism that an agreement would be reached soon to allow the release of funds.
FAAC comprises representatives of the Federal Ministry of Finance, the Office of the Accountant-General of the Federation, revenue-generating agencies such as the Nigerian National Petroleum Company Limited (NNPCL) and the Nigeria Customs Service, alongside commissioners of finance from the 36 states and local government representatives.
Until the impasse is resolved, the January FAAC allocation remains on hold.
Source: Vanguard News
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