A renowned economist, Prof. Ken Ife, has warned that the delay in releasing the communiqué from the January meeting of the Federation Account Allocation Committee (FAAC) could pose serious fiscal challenges for governments at all levels.
Ife, who is the Lead Consultant on Private Sector Development to the ECOWAS Commission, made this known in an interview in Abuja on Tuesday.
He noted that although the maiden FAAC meeting for 2026 was held on January 20, no official communiqué has been issued, a situation he described as troubling.
According to him, the implications of the delay could be far-reaching for the Federal, State, and Local Governments.
“The postponement of revenue sharing creates a ripple effect, delaying salary payments to workers and payments to contractors. This, in turn, reduces productivity and overall economic activity, especially at the state level,” Ife said.
He added that the situation could result in fiscal liquidity pressure for sub-national governments, which largely depend on FAAC allocations to finance development projects and, in many cases, meet salary obligations.
Ife attributed the delay to possible disagreements over revenue remittances into the Federation Account, particularly involving the Nigerian National Petroleum Company Limited (NNPC).
“It could also stem from administrative bottlenecks associated with the implementation of the Fiscal Reform Act 2025, as well as unresolved fiscal policy issues such as the implementation of the Supreme Court judgment on local government fiscal autonomy,” he explained.
He further observed that many local governments have failed to meet the requirements for direct disbursement of funds, including providing designated bank accounts, forcing allocations to continue passing through state governments, and thereby undermining the intended autonomy.
“There is also the issue of the non-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,” he added.
The economist also cited disputes between state governments and the NNPC over oil revenue remittances, especially during periods of low oil production or high operational costs.
According to him, the delay may equally be linked to what he described as the arbitrary waiver of huge NNPC financial liabilities to the Federation Account without adequate consultation or agreement with sub-national governments.
