FAAC Boycott Disrupts Timely Salary Payments Across States
The recent boycott of the Federal Account Allocation Committee (FAAC) meeting by state governors has significantly delayed salary payments and disrupted other financial obligations in several states,leadership reports.
The governors boycotted the meeting on Wednesday, February 19, 2024, over a dispute with the Nigerian National Petroleum Company (NNPC) Ltd regarding N1.7 trillion in unpaid remittances, pending since the removal of the federal government’s petrol subsidy.
When LEADERSHIP Sunday reached out to the Office of the Accountant-General of the Federation on Thursday, an official confirmed that the issue had been resolved and that a communique would be issued. Later that day, the federal government, states, and local governments announced the distribution of N1.703 trillion in federation account revenue for January 2025.
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This was disclosed in a statement by Bawa Mokwa, Director of Press and Public Relations in the Office of the Accountant-General of the Federation.
Salary Delays Across States
Despite the resolution, LEADERSHIP Sunday investigations revealed that most state governments, which typically pay workers between the 23rd and 25th of each month, had yet to do so as of Friday, February 28, 2025.
State officials cited the FAAC boycott as the primary reason for the delay.
Kebbi State
Officials in Kebbi reported an unusual delay, with no news of February salary payments even by the 27th. However, the Ministry of Finance assured workers that they were working around the clock to process salary payments.
Sokoto State
A similar situation was observed in Sokoto, where civil servants, who usually receive salaries before the 25th, were still awaiting payment. The delay has caused concerns among workers preparing for Ramadan fasting, especially given the rising cost of foodstuffs.
Kaduna State
In Kaduna, officials admitted that federal allocations are crucial for salary payments and other recurrent expenditures. One local government official noted that while states like Lagos might manage without FAAC, many others depend entirely on it.
A Finance Ministry official added, “Without FAAC, both state and local governments struggle. How much do they even generate as Internally Generated Revenue (IGR)?”
Niger State
Niger State workers, who usually receive their salaries by the 25th, were still unpaid as of Friday. Even deductions from last month’s salaries for statutory beneficiaries had not been remitted, with the government citing delays in receiving certain federation account components.
Ondo State
Workers in Ondo also experienced delays, with some reporting receipt of February salaries by 3 p.m. on Friday, while others were still waiting. A senior official insisted the delay was unrelated to the state government’s finances, stating, “We have enough to pay our workers.”
Ekiti State
Ekiti’s Commissioner for Information, Chief Taiwo Olatunbosun, acknowledged the FAAC dispute but expressed confidence that it would be resolved. However, he did not confirm whether salary payments would be delayed.
Indications suggest that civil servants, who typically receive their salaries by the 22nd or 23rd, had not been paid as of Friday.
Abia State
Abia State officials expressed optimism about meeting salary obligations despite the delay in FAAC allocations. A Finance Ministry source stated that Governor Alex Otti is committed to ensuring salaries are paid on or before the 28th of each month and may explore internal funding options.
Bayelsa State
Bayelsa stood out as one of the few states that had already commenced salary payments. The Secretary of the Nigeria Labour Congress (NLC), Comrade John Angese, confirmed that workers began receiving payments as early as Monday, February 24.
Cross River State
Cross River Governor Bassey Otu and his counterparts met with FAAC officials on February 24 to resolve the dispute. Chief Press Secretary Nsa Gill assured workers that salaries would be paid, describing the disagreement as a routine issue that had been settled.
Gombe State
The Gombe State government remained silent on salary delays. Efforts to obtain a response from the Commissioner for Finance and Economic Development, Mohammed Magaji, were unsuccessful, as he did not respond to calls, WhatsApp messages, or text inquiries since Tuesday.
Conclusion
While some states have begun processing salary payments, others continue to struggle due to the FAAC dispute. The delay has placed financial strain on workers, particularly as living costs continue to rise.
