₦airaland Forum

The APC, President Tinubu and those who work with him suffer what in economics we call the "illusion of money"... By the devaluation of the naira to the dollar, it gives you an illusion as if additional money is coming in, but that money has no purchasing power,' says SDP's… pic.twitter.com/pso5oZ52lg

— Channels Television (@channelstv) May 31, 2026

ibabz:
The FAAC Allocation Illusion: How Tinubu’s Administration Has Misled Governors About Rising Revenue

I wrote this article, “Has State Allocation Truly Increased? The FAAC Allocation Illusion,” on April 3, 2026 (you can read the full article here https://www.nairaland.com/8646982/state-allocation-truly-increased-faac). Looking back, it’s interesting to see more people beginning to make the same argument and arrive at similar conclusions.

My central point was simple: while FAAC allocations may have increased significantly in naira terms, the real value of those allocations has been eroded by inflation and the collapse of the naira. On paper, the figures look bigger. In reality, the purchasing power behind those figures is far weaker.

This is why I have consistently argued that quoting allocations without considering exchange rates, inflation, debt levels, and actual economic value creates a misleading picture. Numbers alone do not tell the full story.

It is encouraging to see others now raising similar concerns and questioning the narrative that higher nominal allocations automatically translate into greater prosperity or improved governance.

Sometimes, the numbers may change, but the underlying reality remains the samme.

The APC, President Tinubu and those who work with him suffer what in economics we call the "illusion of money"... By the devaluation of the naira to the dollar, it gives you an illusion as if additional money is coming in, but that money has no purchasing power,' says SDP's… pic.twitter.com/pso5oZ52lg

— Channels Television (@channelstv) May 31, 2026

/video/1?s=46

ibabz:
The FAAC Allocation Illusion: How Tinubu’s Administration Has Misled Governors About Rising Revenue

I wrote this article, “Has State Allocation Truly Increased? The FAAC Allocation Illusion,” on April 3, 2026 (you can read the full article here https://www.nairaland.com/8646982/state-allocation-truly-increased-faac). Looking back, it’s interesting to see more people beginning to make the same argument and arrive at similar conclusions.

My central point was simple: while FAAC allocations may have increased significantly in naira terms, the real value of those allocations has been eroded by inflation and the collapse of the naira. On paper, the figures look bigger. In reality, the purchasing power behind those figures is far weaker.

This is why I have consistently argued that quoting allocations without considering exchange rates, inflation, debt levels, and actual economic value creates a misleading picture. Numbers alone do not tell the full story.

It is encouraging to see others now raising similar concerns and questioning the narrative that higher nominal allocations automatically translate into greater prosperity or improved governance.

Sometimes, the numbers may change, but the underlying reality remains the samme.

The APC, President Tinubu and those who work with him suffer what in economics we call the "illusion of money"... By the devaluation of the naira to the dollar, it gives you an illusion as if additional money is coming in, but that money has no purchasing power,' says SDP's… pic.twitter.com/pso5oZ52lg

— Channels Television (@channelstv) May 31, 2026

/video/1?s=46

helinues:
The wailers have run out of ideas

jogojogo:
They praised Oti but failed to admit when Oti said he is able to do those projects due to the reform of the president and removal of subsidy.
They also turn deaf hears to what Peter Mbah said about how the reforms had been the back bone of his achievements

adaxme:
Jagaban forever

helinues:
The wailers have run out of ideas

ibabz:
Oh for your mind. I was unable to respond because I was restricted.

jogojogo:
They praised Oti but failed to admit when Oti said he is able to do those projects due to the reform of the president and removal of subsidy.
They also turn deaf hears to what Peter Mbah said about how the reforms had been the back bone of his achievements

PulaPower:
You’ve created this same topic many times but it’s not working. As it’s not working, you keep opening and opening on again, and believe me, it won’t still work..

You people always act as if it’s not the same Nigerians that are existing today, existed during previous governments. Una too mumuu oo..

If FAAC allocations increase is a mirage, how come it’s easier for state governors to pay salaries now, compare to during past governments? Look at the projects that some governors are doing, without relying on borrowing… How do you think such became possible?

Even the Agulu fraud when he was a governor, doctors had to go on strike for more than a year and dollar was how much then? If there was more money in the circulation then, you think the fraud wouldn’t pay up Doctors?

Ever since the beginning of this government, have you ever heard of anything like strike this, strike that? … How do you think such was possible?

jogojogo:
How comes are they able to pay salary now than how it used to be previously?

Parachoko:
This Is Trash

There's a time in this Nigeria Governors couldn't pay salaries or pensions

Unser Asiwaju, Governors are comfortably paying salaries and pensions

PulaPower:
Mynd44
Dominique

Let put this to front page. These people been peddling dumb lies and we gotta burst them out..

Chivisee:
Some people love deceiving themselves! Every enlightened Nigerians knows that Tinubu have done the right thing but you losers think that you can sway him with all these gibberish, continue mezebueing yourselves.

ibabz:
I’m beginning to think some of you didn’t even watch the video, perhaps because your ₦30,000 monthly stipend couldn’t cover the data costs. Otherwise, I struggle to understand how anyone could watch it and still fail to see why I reiterated the points I had made earlier. My reference to my previous post was simply for confirmation and consistency.

Your APC representative came with the same tired talking point: that states should be delivering more projects because federal allocations have increased. Yet the moment Prince presented his analysis and broke down the figures, your representative suddenly went silent. He couldn’t respond because the facts completely dismantled the narrative he came to defend.

Sometimes I genuinely wonder how some of you reason. It’s baffling to see people who pride themselves on being educated and analytical approach issues with less critical thinking than one would expect from a child.

Perhaps if you watched the video with an open mind, you would understand the points being made. Take the time to watch it properly and digest the facts. Hopefully, you have the intellectual capacity to comprehend what Prince was explaining.

On the issue why it seems that states governors are now able to pay salaries. Let’s look at the figures and data.

Minimum Wage Comparison

2015:
Minimum wage = ₦18,000
Exchange rate = ₦180/$1
Equivalent = about $100 per month

2025/2026:
Minimum wage = ₦70,000
Exchange rate = ₦1,500/$1
Equivalent = about $47 per month

In dollar terms, a minimum-wage worker earns about 53% less today than in 2015.

Lagos State Example

2015:
Personnel cost and pensions = ₦101 billion
Exchange rate = ₦198/$1
Equivalent = about $510 million

2025:
Personnel expenditure = ₦401.1 billion
Exchange rate = ₦1,500/$1
Equivalent = about $267 million


Let me explain it in the simplest way possible.

Imagine a state government received ₦5 billion every month in 2015. At an exchange rate of about ₦180 to $1, that was worth roughly $28 million.

Out of that amount, it spent ₦2 billion on salaries, which was worth about $11 million.

Fast forward to 2026.

The same state now receives ₦15 billion monthly. On paper, that looks like a 200% increase. However, at an exchange rate of about ₦1,500 to $1, that ₦15 billion is worth only about $10 million. Which is more than 50% of what they were receiving 10yrs earlier.

The state now spends ₦5 billion on salaries. While that looks much higher in naira terms, it is worth only about $3.3 million.

So although the numbers look bigger, the actual value of the money is much smaller.

This is why many people say today’s increases are partly an illusion. The figures are larger in naira, but the purchasing power behind those figures is significantly lower.

That helps explain why governments may find it easier to pay salaries without arrears, while many workers still feel financially worse off than they did a decade ago.

The numbers look bigger. The value is smaller. I still doubt if you would be able to comprehend.

PulaPower:
In the 2015 context you mentioned, how many governors were able to pay salaries then? Infact, most states never paid the 18k minimum wage as at then. Civil servants were been owe 5/6months salaries..

Such thing doesn’t exist today and never anymore… Nigerians are never gonna go back to those days of scams !

ibabz:
This guy, are you serious at all? Did you read my analysis why they could not and why it seems they can now? If you disagree why not come up with facts and figures to debunk my claims. Stop ranting like a robot or zoneB

ibabz:
Yes it is because you don’t have the m€nt@ bandwidth to understand figures of comprehend simple English. In case you care to read and know, go and read my last comment on this.

Parachoko:
I beg you in the name of the god you serve, do not ever quote me again if you're not ready to sound like a matured person.

I'm not interested in reading your opinion on this issue

Thanks

Parachoko:
This Is Trash

There's a time in this Nigeria Governors couldn't pay salaries or pensions

Unser Asiwaju, Governors are comfortably paying salaries and pensions

PulaPower:
I did read it all. The proposition in which you’re bringing your argument from is invalid, nothing logical. You have no basic knowledge of the kind argument that you introduced..

Infact, the dollar you're using to measure now is not even doing well at all right now. USA is now considering to float the dollar again and again… Note,USA has floated the dollar more than many countries have done to their currency..

Your argument is lame bro. Go and watch different interviews on your tube regarding Tinubu’s policies, and then you’ll stop disgracing your heritage on this great forum..

Gracias !

ibabz:
Lagos State Example

2015:
Personnel cost and pensions = ₦101 billion
Exchange rate = ₦198/$1
Equivalent = about $510 million

2025:
Personnel expenditure = ₦401.1 billion
Exchange rate = ₦1,500/$1
Equivalent = about $267 million


The numbers look bigger. The value is smaller. I still doubt if you would be able to comprehend.

PulaPower:
Mynd44
Dominique

Let put this to front page. These people been peddling dumb lies and we gotta burst them out..