FAAC APC Is Campaigning With Is a Scam — Rufai Oseni Blasts APC Over ‘Money Illusion’
ABUJA — Arise TV broadcaster Rufai Oseni has criticised the All Progressives Congress (APC) over its presentation of rising Federation Account Allocation Committee (FAAC) disbursements as evidence of improved government revenue and economic performance.
Oseni, during a discussion on the economy, argued that the large naira figures being shared to the three tiers of government do not necessarily mean that Nigeria is economically stronger.
“FAAC that the APC is campaigning on is a scam,” Oseni said, arguing that Nigerians should look beyond the nominal naira figures and consider the value of the money after the sharp depreciation of the naira.
His argument comes amid a growing political debate over the dramatic increase in FAAC distributions since 2023.
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The numbers behind the argument
Available figures show that total FAAC distributions were approximately ₦7.85 trillion in 2019. By 2025, annual distributions had risen to about ₦21.9 trillion.
On the surface, that represents an increase of almost three times in naira terms.
However, recent analysis has pointed out that the dollar value of those allocations has moved in the opposite direction.
Former Vice-President Atiku Abubakar recently made a similar argument, saying the ₦7.85 trillion distributed in 2019 was worth approximately $25.6 billion, while the roughly ₦21.9 trillion distributed in 2025 was worth about $14.6 billion at the applicable exchange rate.
TheCable and other Nigerian newspapers reported the argument, describing it as a debate over whether larger nominal allocations should be interpreted as genuine economic improvement.
BusinessDay’s review of the figures also puts annual FAAC distributions at about ₦7.85 trillion in 2019, ₦10.09 trillion in 2023, ₦15.26 trillion in 2024 and ₦21.9 trillion in 2025.
Why Oseni says the figures can be misleading
The central issue is the distinction between nominal revenue and real economic value.
Nigeria’s currency has lost substantial value against the US dollar since 2019.
The Central Bank of Nigeria’s historical data put the average official exchange rate at about ₦306.92 to the dollar in 2019, while the 2025 average was around ₦1,518 per dollar.
This means that an increase in the number of naira being distributed does not automatically translate into a corresponding increase in purchasing power or international value.
Inflation also matters.
A government receiving more naira may still face higher costs for imported goods, infrastructure materials, machinery and other items whose prices are affected by exchange-rate movements.
Oseni’s argument, therefore, is essentially that APC should not use the bigger naira figures alone as proof that Nigerians are economically better off.
FAAC has actually increased substantially
There is, however, an important qualification.
The increase in FAAC distributions is real; it is not an invented figure.
Recent reporting shows that total distributions have risen sharply since the removal of the petrol subsidy and subsequent fiscal and foreign-exchange reforms.
BusinessDay reported that annual FAAC distributions reached about ₦21.9 trillion in 2025, compared with ₦15.26 trillion in 2024.
The argument is therefore not whether FAAC distributions increased.
The real disagreement is over what those increases mean for the Nigerian economy and ordinary citizens.
More money for governments, but has purchasing power improved?
For state and local governments, higher FAAC allocations can provide additional resources to pay salaries, execute projects and meet other obligations.
But critics argue that the increase must be considered alongside inflation, currency depreciation and the rising cost of living.
The CBN reported an average naira-to-dollar rate of ₦1,521.56 in the first quarter of 2025 and ₦1,581.06 in the second quarter, illustrating the substantially weaker currency environment compared with 2019.
This gives context to Oseni’s criticism.
In other words, ₦21.9 trillion today cannot simply be compared with ₦7.85 trillion in 2019 without considering what each amount could buy.
HEADLINESWAVE FACT CHECK
Claim: FAAC allocations have increased substantially under the Tinubu administration.
Verdict: TRUE. Available figures show a significant rise in annual FAAC distributions.
Claim: The higher naira allocation automatically means Nigeria is economically richer.
Verdict: MISLEADING. Higher nominal allocations do not by themselves establish higher purchasing power or real economic welfare. Exchange rates and inflation must also be considered.
Claim: FAAC itself is a “scam.”
Verdict: NOT ESTABLISHED. This is Oseni’s characterisation/argument, not a verified finding that the Federation Account Allocation Committee or its distribution mechanism is fraudulent.
The bigger question
The controversy ultimately raises a more important question for Nigerians:
Are governments receiving more money because Nigeria is genuinely generating more economic value — or are governments simply receiving more depreciated naira?
That distinction is likely to remain a major issue as political parties prepare for the 2027 elections.
For Headlineswave.ng, the figures show that the increase in FAAC is genuine. But whether the increase represents an improvement in the living standards of Nigerians is a separate question that cannot be answered by looking at the naira figure alone.
