Atiku Exposes Tinubu’s FAAC Scam: Bigger Naira, Poorer Nigerians
Former Vice President Atiku Abubakar on Wednesday dismissed the Federal Government’s much-publicized surge in Federation Account Allocation Committee (FAAC) disbursements as a “money illusion,” insisting the higher naira figures have failed to make Nigerians richer or improve their living standards.
In a statement issued by his media aide, Phrank Shaibu, the African Democratic Congress (ADC) presidential candidate argued that the celebrated increase collapses when measured against the naira’s sharp depreciation, soaring inflation, eroded purchasing power, and the rising debt burdens of many states.
The Brutal Arithmetic
Atiku presented comparative figures to support his claim. In 2019, total FAAC distribution stood at approximately ₦7.85 trillion, equivalent to about $25.6 billion at the then-prevailing exchange rate.
By 2025, the naira figure had climbed to roughly ₦21.9 trillion—nearly three times higher—yet its dollar value had fallen to about $14.6 billion, a drop of more than 40 percent.
“That is not an economic miracle. That is a money illusion,” Atiku said. “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. Bigger numbers do not cancel smaller values.”
Minimum Wage Example Underscores the Point
He further illustrated the erosion of real income with the national minimum wage. In 2019, ₦30,000 was worth roughly $83. By May 2023, the same amount had declined to about $65.
The current ₦70,000 minimum wage, calculated at an exchange rate of around ₦1,320 to the dollar, is worth only approximately $53 — less than what the lower nominal wage could buy six years earlier.
“Think about that: the number written on the worker’s payslip has risen from ₦30,000 to ₦70,000, but its dollar value has fallen from about $83 to about $53,” he noted.
Where Is the Boom?
Atiku challenged the government to show tangible results of the higher allocations in the daily lives of citizens. “If FAAC is truly booming, then where is the boom? Where is it in the price of food?
Where is it in transport? Where is it in electricity, healthcare, housing and jobs? Where is it in the purchasing power of salaries?” he asked.
He argued that governments cannot become richer on paper while ordinary Nigerians grow poorer in reality and still expect public applause.
The true test of an economy, he said, is not the size of the figures announced after FAAC meetings but what those funds can actually purchase and the obligations they can meet.
Debt and Accountability Concerns
The former vice president also questioned why many state governments remain heavily indebted despite the substantial rise in federal allocations.
He maintained that until the administration can clearly demonstrate how the increased revenues have delivered better living standards, reduced debt, and greater purchasing power, the celebration of rising FAAC figures will remain “more naira on paper, less value in reality.”
The statement forms part of Atiku’s broader critique of the Tinubu administration’s economic narrative, particularly claims that subsidy removal and higher FAAC receipts represent transformative success for ordinary Nigerians.
As of Wednesday evening, there was no immediate official response from the Presidency to the latest remarks.
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