Atiku Alleges Tinubu FAAC Deductions Irregularities, Opacity

• Former Vice President Atiku Abubakar has accused the Tinubu administration of opaque Federation Account deductions and questionable oil revenue management.
• These allegations coincide with Nigerians paying up to ₦1,470 per litre for petrol, despite earlier promises that subsidy removal would free up resources.
• Abubakar demands a comprehensive reconciliation of Federation Account revenues from 2023 to date, detailing all deductions, authorities, and beneficiaries.
• He also calls for full disclosure on the Renewed Hope Infrastructure Development Fund, NNPC's LNG operations, and other potential off-book revenue flows.
• The former Vice President highlighted a stark contrast between current fuel prices and those in 2008, despite higher crude oil prices then, questioning the government's commitment to citizen welfare.

The Nigerian populace deserves financial accounts that can be thoroughly interrogated, rather than accounting labels designed to deter scrutiny.

Former Vice President Atiku Abubakar has leveled serious accusations against the administration of President Bola Tinubu, citing a pattern of financial irregularities and a lack of transparency in the management of national resources. Central to these claims are allegations of opaque deductions from the Federation Account, alongside questionable practices in the oversight of Nigeria's oil revenues. Abubakar further points to the existence of parallel funding arrangements and suspected off-book transactions, painting a picture of systemic financial opaqueness.

These allegations emerge as Nigerian citizens grapple with unprecedented economic hardship, exemplified by petrol prices soaring to as much as ₦1,470 per litre. The former Vice President, through a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, underscored the perceived unconscionable nature of the government's actions. He argued that it is unacceptable for an administration that has demanded significant sacrifices from its populace, particularly through the removal of fuel subsidies, to simultaneously escalate the cost of living while failing to provide a clear and verifiable account of the substantial revenues, savings, and deductions accumulated under its purview.

Nigerians were initially assured that the removal of fuel subsidies would liberate funds for critical sectors such as education, healthcare, and infrastructure. However, nearly three and a half years later, citizens are confronting punishing fuel prices, and fundamental questions regarding the utilization of these promised savings remain unanswered. The impact of petrol at ₦1,470 per litre extends far beyond the filling station, directly influencing the cost of transportation, food, education-related commutes, farming, manufacturing, and virtually every commodity purchased by households. Every increase at the pump translates directly into a heavier burden on household budgets, prompting a legitimate public inquiry into the whereabouts of both the subsidy savings and the broader national funds.

The former Vice President asserts that official records from the Federation Account Allocation Committee (FAAC) themselves necessitate a deeper investigation. He highlighted that in June 2025, gross Federation Account revenue was reported at ₦4.232 trillion, yet only ₦1.818 trillion was ultimately distributed. This significant disparity, he noted, is attributed to substantial sums categorized as costs of collection, transfers, interventions, refunds, and savings, all deducted prior to distribution.

In response to these discrepancies, Abubakar has called for a comprehensive reconciliation of Federation Account revenues spanning from 2023 to the present day. This reconciliation, he insists, must meticulously detail gross collections, every deduction made before distribution, the specific statutory authority underpinning each deduction, the receiving accounts, and the ultimate beneficiaries of these funds. The Nigerian populace deserves financial accounts that can be thoroughly interrogated, rather than accounting labels designed to deter scrutiny.

Beyond the Federation Account, Atiku Abubakar has urged full disclosure concerning several other critical financial operations. These include the Renewed Hope Infrastructure Development Fund, details surrounding OML 143, comprehensive oil-production revenues, and the international LNG trading operations conducted by the Nigerian National Petroleum Company (NNPC) Limited. Further demands extend to transparency regarding offshore corporate structures, allegations of unofficial crude lifting, maritime surveillance contracts, and any other potential off-book revenue flows. Abubakar stressed that these are not minor issues to be dismissed with mere press statements or political rhetoric. He argued that every barrel of oil can be measured, every cargo identified, and every legitimate payment traced, suggesting that if the government's financial dealings are indeed in order, publishing the records and allowing independent forensic auditors to reconcile them would swiftly clear the administration of any wrongdoing.

Abubakar also firmly rejected attempts to attribute the escalating domestic fuel prices solely to the current international crisis, arguing that such explanations serve as a blanket excuse. He drew a stark comparison, noting that with crude oil currently trading around $102.52 per barrel, Nigerians are paying as much as ₦1,470 per litre for petrol. This contrasts sharply with the situation in 2008, when crude oil prices reached approximately $147 per barrel, yet petrol was sold at a mere ₦65 per litre under the Yar'Adua administration.

This historical comparison, Abubakar contended, highlights a fundamental difference in governance philosophy: the previous administration understood the imperative of economic policy to ultimately safeguard the welfare of its citizens. He further lamented that Nigerians are being pushed dangerously close to American pump-price levels, despite lacking anything remotely approaching American incomes. For context, petrol in the United States is approximately $4.31 per gallon, which translates to roughly $1.19 per litre, while the U.S. federal minimum wage stands at $7.25 per. This disparity underscores the severe economic strain placed upon Nigerian households, making the calls for financial transparency and accountability even more urgent.

Lawyers and compliance officers should monitor for potential government investigations or forensic audits into Federation Account revenues and oil sector operations, as these allegations could trigger increased scrutiny on entities involved in government contracts or the energy sector. This situation signals heightened political pressure for financial transparency, which may lead to future regulatory changes or enforcement actions impacting businesses operating in Nigeria.

Source: Original reporting via news reports