Former Vice President Atiku Abubakar has urged the Federal Government to provide transparency regarding the real economic impact of rising allocations from the Federation Account Allocation Committee (FAAC). He warned that higher nominal naira figures mask severe currency depreciation, persistent inflation, and heavy state debts.
The statement was issued on September 9, 2026, by Atiku’s Senior Special Assistant on Public Communication, Phrank Shaibu, in Abuja. ​Atiku characterised the celebrating of record revenue distributions across federal, state, and local governments as a “money illusion” that fails to deliver genuine prosperity or relief to ordinary citizens.
While annual FAAC distributions rose on paper from ₦7.85 trillion in 2019 to ₦21.9 trillion by 2025, their purchasing power fell from $25.6 billion to $14.6 billion, marking a over 40% decline in real dollar value. Despite the nominal national minimum wage increase from ₦30,000 to ₦70,000, real take-home value dropped from $83 to 53 (at an exchange rate of ₦1,320/), forcing workers to pay more for basic necessities like food, housing, and healthcare.
Referencing Debt Management Office (DMO) data from September 2026, Atiku noted that 12 outgoing state governors collectively carry over ₦5.3 trillion in debt burden (₦2.16 trillion domestic debt and $2.33 billion foreign obligations).
The former vice president demanded that the Federal Government show how higher disbursements have translated into public infrastructure, debt reduction, or lower costs of living rather than celebrating inflated statistical totals. ​
Atiku concluded that until increased allocations address outstanding state obligations, contractor debts, and collapsing consumer purchasing power, the government’s economic metrics remain “more naira on paper, less value in reality.”
