Atiku: Higher FAAC allocations an illusion, haven’t made Nigerians richer

Atiku: Higher FAAC allocations an illusion, haven’t made Nigerians richer

Former Vice-President Atiku Abubakar has described the Federal Government’s much-publicised increase in allocations from the Federation Account Allocation Committee (FAAC) as an “illusion”, arguing that higher naira figures have not translated into improved living standards for Nigerians.

Atiku, the presidential candidate of the African Democratic Congress (ADC), made the assertion in a statement issued on Wednesday by his media aide, Phrank Shaibu.

According to him, the rise in monthly FAAC disbursements should not be presented as evidence of economic prosperity when the purchasing power of households and businesses continues to be eroded by inflation and rising living costs.

He argued that the nominal increase in allocations was largely driven by changes in the value of the naira and higher nominal revenues, rather than a corresponding expansion in the real economic capacity of Nigerians.

Atiku said the critical measure of economic progress should be whether citizens can afford basic necessities, access quality services and maintain a reasonable standard of living.

He maintained that increased government receipts would only have meaningful impact if they translated into productive investments, employment opportunities, stronger social services and improved purchasing power.

The former vice-president also questioned the sustainability of relying on higher nominal allocations without addressing the structural challenges confronting the economy.

He urged the Federal Government to focus on policies capable of strengthening the productive sector, stabilising the currency, reducing inflation and improving the welfare of citizens.

Atiku’s comments come amid continued public debate over the impact of increased FAAC distributions to the three tiers of government and whether the larger allocations are translating into tangible improvements in the lives of Nigerians.

The former vice-president has remained a prominent critic of the administration’s economic policies and is expected to make economic reform a major plank of the ADC’s political messaging ahead of the 2027 general elections.