Atiku Abubakar: Rising FAAC Allocations Are Just an “Illusion” for Nigerians

Former Vice President Atiku Abubakar has criticized the Federal Account Allocation Committee (FAAC) disbursements, labeling them an “illusion” that fails to improve the living standards of Nigerians. In a statement released on Wednesday, Atiku argued that while nominal allocations have increased, the reality of economic hardship remains unchanged.

According to Atiku, the recent rise in FAAC disbursements—from N4.43 trillion in the first half of 2021 to N18.72 trillion in 2026—does not reflect genuine economic growth. He emphasized that these figures must be contextualized against a backdrop of naira depreciation, high inflation, and diminishing purchasing power.

The former Vice President pointed out that although FAAC disbursements appeared to grow by about 322%, their dollar value has significantly declined. “In 2019, FAAC distribution was approximately N7.85 trillion, worth about $25.6 billion. By 2025, it rose on paper to N21.9 trillion, yet its dollar value fell to around $14.6 billion,” he explained.

Atiku described this phenomenon as “money illusion,” asserting that increased naira allocations do not equate to a wealthier populace. “You cannot batter the currency and wave bigger naira figures as evidence of prosperity,” he said.

He highlighted the stark reality faced by Nigerian workers, using the minimum wage as an example. The current N70,000 minimum wage, he noted, has lost more than 36% of its dollar value since 2019.

The ADC presidential candidate questioned the efficacy of increased FAAC allocations, asking why they have not led to lower food and transport costs, improved healthcare, or better job opportunities. “If FAAC is truly booming, then where is the boom?” he queried.

Atiku also criticized the rising indebtedness of states, despite what he termed “unprecedented” allocations. He urged for greater scrutiny of government expenditures, including tax concessions and abandoned projects.

“Nigerians do not eat FAAC figures. They live in the real economy, and the real economy is measured by what their money can buy,” Atiku asserted, emphasizing the disconnect between government statistics and the daily struggles of citizens.

He concluded that higher FAAC allocations should not be equated with prosperity, especially when purchasing power remains weak and government debts continue to rise. As the nation grapples with economic challenges, Atiku’s perspective calls for a reevaluation of how financial resources are managed and allocated to truly benefit the Nigerian populace.