Tinubu’s FAAC Boom Is a Scam, Says Atiku

Former Vice President Atiku Abubakar has dismissed the Federal Government’s rising monthly allocations from the Federation Account as a “money illusion”.

Atiku said the higher naira figures do not reflect stronger economic value because inflation and currency depreciation have reduced Nigerians’ purchasing power.

In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku said the government should stop presenting larger naira allocations as evidence of economic progress.

He compared Federation Account Allocation Committee (FAAC) distributions in 2019 and 2025 to support his argument.

According to him, FAAC shared about N7.85 trillion in 2019, worth roughly $25.6 billion at the prevailing exchange rate.

By 2025, he said, the allocation had risen to about N21.9 trillion. However, its dollar value had fallen to approximately $14.6 billion.

Atiku said the figures showed that the naira amount had nearly tripled while the underlying dollar value fell by more than 40 per cent.

“That is not an economic miracle. That is money illusion,” he said.

He argued that currency depreciation and inflation had weakened the real value of the increased allocations.

Atiku said the impact becomes clearer when measured against the earnings of ordinary workers.

He cited the minimum wage, saying N30,000 in 2019 was worth about $83.

By May 2023, he said, the same salary had fallen to about $65 in dollar terms.

Although the minimum wage has risen to N70,000, Atiku said the amount was worth only about $53 at an exchange rate of around N1,320 to the dollar.

He said the figures showed that higher nominal wages had not translated into greater purchasing power.

“The figure in your hand is bigger, but the value in your pocket is smaller,” Atiku said.

He argued that the true measure of economic progress should focus on what government revenue can buy and how it affects citizens’ living standards.

“If FAAC is truly booming, then where is the boom?” he asked.

Atiku cited food, transport, electricity, healthcare, housing and employment as areas where Nigerians should feel the effect of increased government revenue.

He also questioned the continued debt burden carried by state governments despite higher FAAC allocations.

Atiku referred to a September 2026 report based on Debt Management Office data, which put the combined debt of 12 states at about N5.3 trillion.

The figure comprises N2.16 trillion in domestic debt and about $2.33 billion in foreign obligations, according to the statement.

He therefore challenged the Federal Government to explain why states remain heavily indebted despite what he described as unprecedented revenue.

“You cannot boast endlessly about unprecedented FAAC allocations while states remain heavily indebted,” he said.

Atiku also cited outstanding pension and gratuity obligations, unpaid contractors and other government liabilities as evidence that higher revenue alone does not amount to economic success.

He said revenue becomes meaningful only when it translates into infrastructure, debt repayment and improved living conditions.

The former vice president further called for closer scrutiny of government spending.

He said fiscal discipline should cover government expenditure, tax concessions, import waivers, revenue exemptions and duplicated or abandoned projects.

Atiku argued that these areas should face the same scrutiny expected when government asks citizens to make economic sacrifices.