RismadarVoice Reporters
February 7, 2026
The New Nigeria Peoples Party (NNPP) and Labour Party (LP) have cautioned the Federal Government and state Governors against mismanaging the recent windfall from the Federation Account Allocation Committee (FAAC), stressing that increased revenue has yet to translate into improved governance or better living conditions for Nigerians.
The warning follows the sharing of N1.969 trillion as December 2025 Federation Account revenue among the Federal Government, states, and local government councils.
A communiqué issued after the January FAAC meeting, made available on Monday by the Director of Press and Public Relations, Office of the Accountant-General of the Federation, Bawa Mokwa, showed that the distributable revenue comprised statutory revenue of N1.084 trillion, Value Added Tax of N846.507 billion, and Electronic Money Transfer Levy of N38.110 billion.
The communiqué further stated that total gross revenue of N2.585 trillion was available in December 2025, from which N104.697 billion was deducted as cost of collection, while N511.585 billion went to transfers, refunds, and savings.
From the N1.969 trillion distributable revenue, the Federal Government received N653.500 billion, state governments N706.469 billion, and local government councils N513.272 billion, while N96.083 billion was shared as 13 per cent derivation revenue to benefiting states.
Reacting, NNPP National Publicity Secretary Ladipo Johnson expressed concern over what he described as poor spending priorities by many state governments, despite the rise in allocations.
“I must say that on a general assessment, it wouldn’t seem that most states are spending their money judiciously. Maybe it is because of the cost of governance in a lot of states, as with the federal government as well. The cost of governance is too high. If it is high and they are spending money on frivolities, you will not appreciate the fact that they are spending more. Besides, now that they get more cash, the value is reduced. As you well know, the Naira has lost a lot of value. That’s why the quantity, the quality of what you get is not what you expect,” Johnson said.
Similarly, Abayomi Arabambi, Vice Chairman of the Labour Party in the South-West, accused governors of acting with impunity and undermining democracy, particularly at the local government level.
“I think we have predators as our Governors and they are making a mockery of our democracy. I would have preferred a situation where the National Assembly would appropriate the money into the state and start giving to the governors like crumbs in the same manner they are doing to local governments.
“For God’s sake, why should any governor disobey the judgment of the Supreme Court on local government autonomy? After all, all Governors are aware that we have federal, state, and local government structures. But these are economic predators. They just want to stagnate local government so they don’t do much. And these are the people who are closer to the grassroots.
“It’s a shame, especially with the APC governors whom I see as disgracing the administration of their leader, President Bola Tinubu. They are making a mockery of our democracy. And that is not good,” Arabambi said.
The opposition parties urged both the Federal and state governments to prioritise transparency, accountability, and prudent spending to ensure that FAAC allocations benefit Nigerians, meaningfully.
