The delay follows a brief announcement by the Minister of State for Finance, Doris Uzoka-Anite, who confirmed on January 21 that the FAAC meeting had taken place. However, unlike previous sessions—where allocations were typically disclosed within 48 hours—no breakdown of revenue sharing has been released. This has fueled speculation about potential disputes over revenue figures, unreconciled accounts, or disagreements involving the Nigerian National Petroleum Company (NNPC) Limited.
Under Nigeria’s revenue-sharing framework, 52.68% of distributable revenue goes to the federal government, 26.72% to states, and 20.6% to local governments, with oil-producing states receiving an additional 13% derivation fund. These allocations are a lifeline for many states, particularly those with limited internally generated revenue (IGR). The prolonged silence from FAAC has raised fears that January disbursements may be stalled, threatening budget execution and economic stability at sub-national levels.
Financial analyst Ayokunle Olubunmi of Agusto & Co. described the situation as "highly irregular," noting that delays often signal unresolved reconciliation issues or disputes between revenue-generating agencies and the federation. "The absence of transparency breeds uncertainty," he said. "If funds haven’t been shared, states and local governments may struggle to pay salaries, which could trigger broader economic disruptions."
Professor Ken Ife, an economic policy consultant to ECOWAS, echoed these concerns, linking the delay to three key factors:
NNPC Remittance Disputes: Ongoing disagreements over the accuracy and timeliness of NNPC’s revenue contributions, exacerbated by the company’s operational and debt challenges.
Fiscal Reform Act 2025: Administrative bottlenecks from recent amendments to revenue allocation processes, which may require additional verification steps.
Local Government Autonomy: Lingering implementation hurdles following the 2024 constitutional amendments granting LGs direct financial control, which some states have resisted.
Ife also referenced President Tinubu’s controversial December 2025 directive to cancel $1.4 billion and ₦5.57 trillion in NNPC debt owed to FAAC—a move some states argued was unilateral. "Such decisions, without full consensus, risk creating reconciliation deadlocks," he warned.
With no clarity from the finance ministry, stakeholders are urging immediate transparency to prevent a cascade of fiscal crises. State governments, many already grappling with high debt and low IGR, face heightened liquidity risks if the delay persists. Analysts stress that timely FAAC disclosures are not just procedural but vital to maintaining public trust in Nigeria’s fiscal governance.
