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.