African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has challenged the Federal Government to explain why states remain heavily indebted despite what he described as record-high monthly allocations from the Federation Account Allocation Committee (FAAC).
Atiku, through his Senior Special Assistant on Public Communication, Phrank Shaibu, argued that the increase in FAAC disbursements should not automatically be interpreted as evidence of economic prosperity, stressing that the real measure of growth is the impact of government revenue on citizens and public finances.
He pointed to a September 2026 report based on Debt Management Office data, which indicated that 12 states whose governors are nearing the end of their tenures collectively owe about ₦5.3 trillion, made up of approximately ₦2.16 trillion in domestic debt and $2.33 billion in foreign obligations.
The former Vice President questioned why states receiving unprecedented allocations were still struggling with debt, pension and gratuity liabilities, unpaid contractors and other financial obligations.
“If the states are swimming in unprecedented revenues, why are they still drowning in debt?” Atiku asked.
He argued that the government’s focus on the nominal naira value of FAAC allocations could obscure the effects of inflation and naira depreciation on the actual purchasing power of those funds.
According to Atiku, FAAC distributions rose from approximately ₦7.85 trillion in 2019 to about ₦21.9 trillion in 2025. However, he noted that the dollar value of the allocations had declined over the same period because of the sharp depreciation of the naira.
He also cited the minimum wage as an illustration, saying the increase from ₦30,000 to ₦70,000 had not necessarily translated into greater purchasing power for workers because the cost of food, transportation, electricity, healthcare and housing had also risen significantly.
Atiku therefore called for greater scrutiny of government spending, including tax concessions, import waivers, revenue exemptions, duplicated projects and abandoned projects.
He maintained that increased government revenue should ultimately translate into better infrastructure, reduced liabilities, improved public services and a higher standard of living.
“Nigerians do not eat FAAC figures,” he said, arguing that economic performance should be judged by what citizens and governments can actually afford with the money available to them.
The ADC candidate’s comments add a political dimension to the ongoing debate over whether Nigeria’s rising government revenues under President Bola Tinubu are translating into meaningful economic gains for states and ordinary citizens.
