Increased federal allocations have not improved Nigerians’ purchasing power – Analyst Odok

A university lecturer and political analyst, Dr Joseph Odok, has questioned the impact of increased allocations from the Federation Account Allocation Committee, FAAC, to state governments, saying the rise in revenue has not translated into improved purchasing power for Nigerians.

Odok said in his social media post that the increase in allocations and salaries had not necessarily improved living conditions, arguing that the purchasing power of workers had declined despite higher nominal earnings.

In a commentary, the lecturer recalled that he could comfortably fuel and maintain his car when he was a Lecturer II, but said the current economic situation had made it difficult for some professors to fuel and drive their vehicles.

He attributed the situation to the declining value of the naira and rising cost of living, noting that the increase in the volume of money available to governments and workers did not necessarily mean an improvement in their economic circumstances.

Odok also argued that the increase in federal allocations to states under President Bola Tinubu had not translated into measurable improvements in poverty reduction or development.

He said the increase in the national minimum wage from N30,000 to N70,000 had also failed to improve the living standards of many workers, who, according to him, were now worse off in terms of purchasing power.

The lecturer said, “My understanding of the relationship between increased federal allocations and the economic conditions of Nigerians changed after listening to an analysis by Arise News presenter, Rufai Oseni. Higher revenue figures should not be mistaken for improved economic welfare. The real measure should be the purchasing power of citizens.”