For thousands of public sector workers across Nigeria, January is starting the same way December ended, with unpaid salaries. A dispute over N1.97tn ($2.1bn) in federal revenues has stalled payments, underscoring just how dependent state governments are on central transfers.
The hold-up comes after state finance commissioners rejected the figures tabled at the Federation Account Allocation Committee (FAAC) meeting on January 20 in Abuja. According to sources, the states argued that the proposed allocation underestimated the revenue collected in December 2025.
FAAC meetings normally unlock funds within days, allowing governments to pay civil servants within five days. But this month, that rhythm has been broken, leaving workers anxious and local economies feeling the strain.
At the January session, FAAC proposed N1.969tn for sharing from a total December revenue of N2.585tn. N846.5bn came from value added tax, N1.631tn from statutory sources, and N38.1bn from the electronic money transfer levy.
Under the allocation formula, the federal government was to receive N653.5bn, states and the federal capital territory N706.4bn, and local governments N513.2bn. Oil-producing states were due N96bn as their 13 per cent derivation.
The standoff has forced officials to call another FAAC meeting on Monday to try to resolve the dispute. There are indications the figures may be adjusted to secure state approval, but uncertainty lingers.
More than 30 states rely on FAAC transfers for at least 80 per cent of their monthly spending. That makes them extremely vulnerable to delays, with ripple effects for workers who rely on salaries to pay rent, school fees, and basic bills.
FAAC brings together representatives from the finance ministry, the office of the accountant-general, the Nigerian National Petroleum Company, tax and customs authorities, state finance commissioners, and local governments.
As the delay stretches into its second week, the spotlight is now on whether the next FAAC meeting will deliver a resolution, and, more urgently, when workers can finally see their January wages.