The communiqué from the January 2026 meeting of the Federation Account Allocation Committee (FAAC) is yet to be released, eight days after the Minister of State for Finance, Doris Uzoka-Anite, announced that the meeting had taken place.
On January 21, Uzoka-Anite posted photographs from the meeting on X, noting that she was chairing the first FAAC meeting of 2026. However, unlike the usual practice, details of the revenue shared among the federal, state, and local governments have not been made public.
Typically, the FAAC communiqué outlines how monthly revenues generated by the federation are distributed. Under the existing revenue-sharing formula, the federal government receives 52.68 percent, states get 26.72 percent, while local governments receive 20.6 percent. Oil-producing states are also entitled to an additional 13 percent derivation fund.
FAAC meets monthly to allocate federally collected revenue to the 36 states and 774 local governments, with the allocation details customarily released immediately after each meeting.
The continued absence of the January 2026 communiqué has therefore raised concerns among analysts and stakeholders.
Delay May Signal Disagreement or Administrative Bottlenecks
Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co., suggested that the delay may be due to disagreements over certain components of the revenue allocation or unresolved reconciliation issues.
“Sometimes, delays occur when there are aspects of the allocation that parties have not agreed on or figures that still need to be reconciled. However, it is unusual for no communiqué to be issued at all,” he said.
Olubunmi stressed the need for transparency, noting that without official communication, the public cannot ascertain whether the distributable revenue has been shared or when another meeting might be held. He warned that prolonged delays could affect salary payments, particularly if funds have not yet been disbursed.
“It is important for the authorities to explain the reason for the delay and clarify the financial position of the federation,” he added.
Also commenting on the issue, Professor Ken Ife, Lead Consultant on Private Sector Development to the ECOWAS Commission, told the News Agency of Nigeria (NAN) that the delayed release of the January allocation details could trigger fiscal challenges, especially at the sub-national level.
According to Ife, postponement of revenue sharing can disrupt salary payments, delay contractor obligations, and slow economic activity within states that rely heavily on FAAC allocations.
He attributed the delay to possible disputes over revenue remittances to the federation account, particularly from the Nigerian National Petroleum Company (NNPC) Limited, as well as administrative challenges linked to the implementation of the Fiscal Reform Act 2025.
Ife also pointed to ongoing issues surrounding the implementation of the Supreme Court ruling on local government fiscal autonomy, noting that many local governments are yet to meet the requirements for direct disbursement, including providing designated bank accounts. This, he said, continues to force funds through state governments, undermining the intended autonomy.
Additionally, he 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.
The economist further noted that disputes between states and the NNPC over oil revenue remittances—especially during periods of low production or high operating costs—could also be contributing factors.
He added that recent decisions, including the presidential approval granted on December 29, 2025, for the cancellation of approximately $1.42 billion and N5.57 trillion in outstanding NNPC obligations to FAAC, may have further complicated the revenue-sharing process if not adequately consulted with subnational governments.
Overall, analysts insist that clear communication from the relevant authorities is critical to restoring confidence and preventing similar delays in the future.