States may face salary crisis as FAAC drops to four-year low, sheds N125bn

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Some states are set to face fresh economic challenges as the Federal Allocation has dropped to a four-year low allocations. In January, the Federation Accounts Allocation Committee shared the sum of N574.66bn to the Federal Government, states and local government councils. The amount shared in January is lower than the N699.82bn disbursed in December 2021. This fall in FAAC allocations follows the Federal Government’s announcement of its plans to deduct N950bn for the payment of fuel subsidy from allocations due to states in 2022. Details of the allocations for January are contained in a communiqué issued at the end of a virtual meeting of the FAAC for February 2022 released on Thursday night.

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