A fresh fiscal standoff has emerged between Nigeria’s states and federal authorities following sharp objections to the December 2025 Federation Accounts Allocation Committee disbursement, even as states received a combined N6.82 trillion from the federation account in the first eleven months of the year.
State governments argue that the December amount presented for sharing does not reflect actual revenue inflows and fails to account for rising expenditure pressures.
The disagreement led to the postponement of the January 2026 FAAC meeting, raising concerns over possible delays in salary payments and other recurrent obligations across several states.
The News Chronicle reported that the dispute intensified after data showed a steady decline in monthly FAAC allocations, which peaked at N727.17 billion in September 2025 and fell to N601.73 billion by November.
State officials reportedly insisted that December collections should have supported a higher payout.
Tensions at the meeting escalated over procedural disagreements, prompting the Minister of State for Finance, Doris Uzoka Anite, to preside after differences emerged with the finance minister.
Under the proposed sharing formula, the Federal Government was to receive N653.5 billion, states and the FCT N706.4 billion, local governments N513.2 billion, while oil-producing states were allocated about N96 billion in derivation funds.
With most states heavily dependent on federal transfers, the deadlock has heightened anxiety. A rescheduled FAAC meeting is expected to determine whether revised figures can avert another prolonged revenue impasse.
