Former Vice-President Atiku Abubakar criticised the Federal Government, accusing the Bola Tinubu administration of fiscal indiscipline. Atiku stated that the government borrowed N24.7 trillion from the domestic market between January and August 2026, marking a 90.5 per cent increase over the previous year despite surging crude oil prices.
Domestic Borrowing Surges by 90.5 Percent Amid Crude Windfall
The Federal Government increased its borrowing from domestic investors by 90.5 per cent, year-on-year, between January and August 2026. Former Vice-President Atiku Abubakar released a statement through his Senior Special Assistant on Public Communication, Phrank Shaibu, pointing out that total borrowing reached N24.7 trillion during the eight-month period, compared to N12.98 trillion in the corresponding period of 2025.
The financial expansion arrived while global energy markets recorded high valuations, with Brent crude soaring to $96 per barrel, nearing $100 per barrel, on Monday, far outstripping the oil benchmark of $64.85 per barrel established at the start of the fiscal year.
“At the beginning of this fiscal year, the Federal Government budgeted on an oil benchmark of $64.85 per barrel. Today, crude oil prices have risen substantially above that benchmark. Yet, instead of this windfall translating into lower borrowing, stronger businesses and relief for Nigerians, the Federal Government went into the domestic market and borrowed a staggering N24.7 trillion between January and August 2026.”
Atiku Abubakar, Former Vice-President
Atiku contended that the removal of the fuel subsidy, the naira’s float, and higher crude oil prices had increased government revenues, but this had not translated into reduced borrowing. Instead of easing fiscal pressure, he argued, the administration maintained an aggressive borrowing stance that he characterized as reckless.
“This is not fiscal management. This is a government borrowing like drunken sailors in the middle of a revenue windfall.”
Atiku Abubakar, Former Vice-President
Atiku questioned how the additional revenues were being deployed, stating that after three years of sacrifice, Nigerians deserve to see what happened to the subsidy savings, the additional revenues, and the crude-oil windfall. He added that a government cannot collect more, earn more, and still borrow more while asking hungry Nigerians to sacrifice more.
Private Sector Access to Credit Stifled by Government Competition
Atiku raised concerns over the impact of government borrowing on private-sector access to credit, claiming that credit to government had grown by 43 per cent, compared with 9.6 per cent growth in credit to the private sector. According to his figures, government credit expanded about 4.5 times faster than credit to businesses, suggesting the government was competing directly with businesses for available funds in the banking system.
Atiku argued this dynamic undermines the ability of manufacturers, farmers, and entrepreneurs to secure affordable financing for expansion and job creation. When financial institutions can lend to government at attractive, risk-free rates, lending to commercial operators becomes expensive and scarce.
“When banks can lend to government at attractive, risk-free rates, why would they lend cheaply to the manufacturer in Aba, the furniture maker in Kaduna, the agro-processor in Kano or the young entrepreneur in Lagos?”
Atiku Abubakar, Former Vice-President
The statement noted that recent reports indicate a significant share of the short-term assets of some of Nigeria’s biggest companies is now trapped in unpaid customer bills, telling the story that companies may record sales, but customers increasingly cannot pay because the economy has drained their purchasing power. Ordinary traders, such as a woman selling frozen food in Kubwa, pay more to transport goods, more to power freezers, and more to restock, while poorer customers buy less or ask for credit until the trader can no longer restock and suppliers are owed.
Rising Living Costs and the Political Battle Over Production Support
As the presidential candidate of the African Democratic Congress (ADC), Atiku criticised the economic policies of President Bola Tinubu, stating that the administration created and deepened the cost-of-living crisis and eroded the purchasing power of Nigerians who are bearing the consequences of higher fuel, food, and transportation costs. Essential goods have registered steep price increases since the implementation of current economic reforms. Fertilizer has moved from about N9,000 to around N50,000; petrol has moved from about N199 to around N1,400 per litre; cement has moved from roughly N4,000 to around N13,500; and the dollar has moved from around N450 to about N1,400.
Atiku contrasted the administration’s domestic borrowing approach with positions taken by the Crude Oil Refinery Owners Association of Nigeria (CORAN) advocating for support for domestic refining, alongside United States President Donald Trump’s intervention to strengthen petroleum production and refining in the US. He argued that production subsidies are about putting money back into people’s pockets by supporting local production and refining, increasing supply, and monitoring prices so Nigerians feel the benefit at the pump.
“Tinubu did not inherit this cost-of-living crisis from Nigerians. His policies created and deepened it. He took away relief from the people, made fuel, food, transport and basic survival more expensive, and now wants Nigerians to applaud statistics while their pockets are empty.”
Atiku Abubakar, Former Vice-President
The combination of rising prices, weaker businesses, and declining purchasing power requires immediate intervention rather than further calls for Nigerians to endure the impact of reforms that have left citizens facing expensive food, expensive transport, no reliable electricity, and no N-Power support.
