Former Vice President Atiku Abubakar has described the reported increase in monthly allocations to the three tiers of government from the Federation Account as a “money illusion”, saying the rising naira figures have failed to translate into improved living standards for Nigerians.
Atiku, in a statement issued yesterday in Abuja by his Senior Special Assistant on Public Communication, Phrank Shaibu, said the growth in Federation Account Allocation Committee (FAAC) disbursements must be considered alongside the depreciation of the naira, high inflation, declining purchasing power and rising debt burden of state governments.
He argued that although FAAC allocations had increased substantially in nominal naira terms, their real value had fallen when measured against the dollar and Nigerians’ purchasing power.
According to him, FAAC distributions increased from about N7.85 trillion in 2019, which he put at approximately $25.6 billion at the prevailing exchange rate, to about N21.9 trillion in 2025, estimated at roughly $14.6 billion.
Atiku said the figures showed that while the naira amount distributed had almost tripled, its underlying dollar value had dropped by more than 40 per cent.
“You cannot batter the currency, allow inflation to ravage purchasing power and then wave bigger naira figures before Nigerians as evidence that the country has become richer,” he said.
The former vice president also cited the minimum wage to buttress his argument, saying increases in nominal earnings did not necessarily mean workers had become better off.
He noted that the N30,000 minimum wage introduced in 2019 was worth about $83 at the time, while its value had fallen to approximately $65 by May 2023.
Although the minimum wage was later increased to N70,000, Atiku said its dollar equivalent, at an exchange rate of about N1,320 to the dollar, was approximately $53.
He argued that the situation meant workers could receive more naira while still being unable to afford as much food, transportation, electricity, healthcare and housing as they previously could.
According to Atiku, the true measure of economic performance should be citizens’ purchasing power and what government revenue delivers, rather than the size of figures announced after FAAC meetings.
“If FAAC is truly booming, then where is the boom? Where is it in the price of food? Where is it in transport, electricity, healthcare, housing and jobs?” he asked.
Atiku also questioned why several state governments remained heavily indebted despite the reported increase in federal allocations.
Citing a September 2026 report based on Debt Management Office data, he said 12 states whose governors were approaching the end of their tenures had a combined debt burden of about N5.3 trillion, comprising N2.16 trillion in domestic debt and approximately $2.33 billion in foreign obligations.
He said the figures raised questions about how increased government revenues were being deployed, particularly against the backdrop of outstanding pension and gratuity obligations, unpaid contractors and other liabilities.
The former vice president said revenue should ultimately be measured by the infrastructure it delivers, debts it settles and improvements it brings to citizens’ lives.
He also called for greater scrutiny of government expenditure, including concessions, import waivers, revenue exemptions, duplicated and abandoned projects and other areas where, he alleged, public resources could be wasted.
Atiku maintained that fiscal responsibility should apply across all levels of government and should not disproportionately burden Nigerians already struggling with rising living costs.
He said Nigerians experience the economy through the prices of food, transportation, school fees, medicines, electricity and housing, rather than through government spreadsheets or FAAC communiqués.
The former vice president therefore challenged the administration of President Bola Tinubu to demonstrate that increased allocations were translating into improved living conditions, stronger purchasing power and reduced economic pressure on households.
“More naira is not automatically more prosperity,” Atiku said, insisting that the ultimate measure of economic success should be whether Nigerians are actually better off.
