The Federation Account Allocation Committee (FAAC) has indefinitely postponed its February 2025 meeting. The delay raises concerns about revenue allocation to federal, state, and local governments. No reason was given, but a new date will be announced later. Stakeholders worry about financial implications for public services and government budgets.
The Federation Account Allocation Committee (FAAC) has postponed its scheduled February 2025 meeting indefinitely, causing uncertainty among federal, state, and local governments regarding revenue disbursements.
In a statement issued by FAAC Secretary Ali Mohammed, committee members were informed that the meeting would no longer hold as planned, with no new date announced yet. The decision has raised concerns, as FAAC meetings are crucial for distributing funds generated from oil sales, taxes, and other national revenue sources to different levels of government.
The delay comes at a time when many states rely heavily on FAAC allocations to meet financial obligations, including salary payments and infrastructural projects. Analysts warn that prolonged postponements could lead to liquidity issues for states and local councils, potentially disrupting essential public services.
Although no official reason was provided for the postponement, some financial experts speculate that ongoing disputes over revenue remittances and fiscal policies may have contributed to the delay. In recent months, there have been concerns over withheld funds by key agencies, particularly the Nigerian National Petroleum Company Limited (NNPCL).
The Ministry of Finance has assured stakeholders that a new meeting date will be communicated soon. Meanwhile, state governments and economic analysts are urging FAAC to address any underlying issues swiftly to prevent further financial instability at subnational levels.
