Former Vice President Atiku Abubakar has called on the Federal Government to provide clarity on the real impact of rising FAAC allocations, saying higher naira figures must be measured against currency value, inflation, and state obligations.
Reacting on Wednesday through his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku said the increase in FAAC distributions should be assessed beyond the headline numbers.
The presidential candidate of the African Democratic Congress (ADC) noted that while FAAC allocations have grown in naira terms, their value in foreign currency has declined due to exchange rate changes.
‘In 2019, FAAC distribution was approximately ?7.85 trillion, worth about $25.6 billion at the prevailing exchange rate. By 2025, FAAC had risen on paper to approximately ?21.9 trillion, yet its dollar value was roughly $14.6 billion. So while the naira figure has increased significantly, the dollar value is lower,’ he said.
He described this as a case where nominal increases do not automatically translate to improved purchasing power.
Using the minimum wage as an example, Atiku said nominal increases must also be weighed against what citizens can buy.
‘In 2019, ?30,000 was worth roughly $83. By May 2023, that same ?30,000 was about $65. Today, with the minimum wage at ?70,000 and an exchange rate of around ?1,320 to the dollar, that amount is about $53.
‘The concern is that while the figure on the payslip has risen, the real value and what it can buy in food, transport, electricity, health and housing may have reduced,’ he said.
Atiku said the key test of revenue growth is what it delivers to citizens and how it addresses existing obligations.
‘If FAAC allocations have increased, Nigerians should see the impact in food prices, transport, electricity, healthcare, housing and jobs, and in the purchasing power of salaries,’ he stated.
He also referenced debt data, noting that a September 2026 report based on Debt Management Office figures showed that 12 states with governors nearing the end of their terms carry a combined debt burden of approximately ?5.3 trillion, comprising ?2.16 trillion in domestic debt and about $2.33 billion in foreign obligations.
‘If revenues have grown, the expectation is that states should also be able to reduce debts, clear pension and gratuity arrears, and fund projects. Nigerians deserve to know how the allocations are being applied,’ he said.
Atiku urged the government to apply the same scrutiny to government expenditure, tax concessions, import waivers, revenue exemptions, duplicated and abandoned projects, to ensure resources are used efficiently.
‘Fiscal responsibility should apply across board, not only when citizens seek relief from high costs of living. Revenue is important, but the measure of success is what it buys, what debts it settles, what infrastructure it delivers, and how it improves living standards,’ he said.
He said Nigerians experience the economy through daily costs.
‘Nigerians live in the real economy. It is measured by what their income can buy at the market, in transport, schools and hospitals. More naira does not automatically mean more prosperity. The focus should be on value, affordability and outcomes,’ Atiku said.
He said that the priority should be policies that support cheaper transportation, moderate food prices, manageable energy costs, and stronger purchasing power.
‘The central questions remain: what is the value of the money? What has it delivered? What obligations has it settled? And are Nigerians better off? Until these are addressed, discussions around FAAC should go beyond the figures announced,’ the statement added.