States Await Funds as FAAC Skips January Allocation Meeting

The Federation Accounts Allocation Committee (FAAC), has remained silent on the sharing of January 2026 revenue to the three tiers of government.

January 2026 brought high expectations for higher revenue from FAAC by states and local governments as the new tax laws took effect.

This is even as federation revenue has maintained a steady decline over three consecutive months, declining from N2.164 trillion in October 2025 to N1.736 trillion in November, then to N1.631 trillion in December, before sliding to N1.561 trillion in February 2026.

Although it is not clear what really happened to the revenue generated in January 2026, it was reported that during the January 2026 FAAC meeting, state commissioners for Finance rejected the N1.969 trillion proposed for distribution as December 2025 revenue, describing it as too low compared to what they believed to have accrued to the federation account in the month.

The differences were, however, later resolved, and on February 1 2026, the revenue generated in December 2025 was distributed among the three tiers of government.

However, the allocation figures for January 2026 revenue were not made public after the February FAAC meeting.

Expectations were that FAAC would, during its March meeting, address the January 2026 revenue matter, but instead shared February revenue while remaining silent on January revenue.

Section 162(3) of the 1999 Constitution (as amended) mandates that amounts in the Federation Account “shall be distributed among the Federal, State and Local Government Councils” on terms set by the National Assembly. Failure to share federation revenue among the three tiers of government on a monthly basis could amount to a breach of the constitution and the Fiscal Responsibility Act, as well as undermine the fiscal stability of states and local governments.

The Director, Press and Public Relations, Office of the Accountant-General of the Federation, Mr. Bawa Mokwa, when asked of the January 2026 revenue, said, “We are working on it.”

Highlights of the February revenue shared by FAAC over the weekend were that FAAC received 100 per cent of the profit from oil production sharing contracts (PSCs) with the Nigerian National Petroleum Company (NNPC) Limited in February, indicating that the recently signed executive order by the President has taken effect.

The President signed, on February 13, 2026, Presidential Executive Order 9, to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.

The order mandates that all oil and gas revenues, including royalties and taxes, be paid directly into the Federation Account.

It requires the Nigerian National Petroleum Company Limited (NNPCL) to remit 100 per cent of profit from oil and gas revenues to the Federation Account, replacing the previous practice of retaining large portions for expenses, including the frontier exploration fund.

It was also observed in the communique issued by FAAC at the end of its March 2026 meeting that revenue from value-added tax (VAT), fell significantly to N668.450 billion in February 2026 from N1.083 trillion in the month of January 2026 and N913.957 billion in December 2025.