Key Takeaways
- Atiku Abubakar faults the Tinubu administration's aggressive domestic borrowing despite an estimated N7.98 trillion windfall from high international crude oil prices.
- The federal government has raised about N5 trillion from the domestic bond market in the first half of 2026, almost 80% of the total amount borrowed during the corresponding period in 2025.
- Atiku questions the administration's economic management, describing it as contradictory, opaque, and bereft of fiscal discipline.
Former Vice President Atiku Abubakar has expressed strong reservations about the Tinubu administration's aggressive domestic borrowing, particularly in light of the significant windfall generated by high international crude oil prices. According to Atiku, the administration's economic management is contradictory, opaque, and bereft of fiscal discipline, as evidenced by its decision to pile up debts despite an estimated N7.98 trillion windfall.
The former Vice President pointed out that the federal government has already raised about N5 trillion from the domestic bond market in the first half of 2026, which is almost 80% of the total amount borrowed during the corresponding period in 2025. This borrowing spree is alarming, especially considering that the 2026 Appropriation Act benchmarked crude oil at $64.84 per barrel, while the average price of Brent crude has remained around $92 per barrel between March 1 and July 14.
Atiku explained that the gap between the budget benchmark and prevailing oil prices amounts to an additional $27.15 on every barrel of crude sold, translating to an estimated $42.7 million in additional daily revenue at an average production of 1.5 million barrels per day. Over the 135-day period under review, he put this at approximately $5.76 billion, or about ₦7.98 trillion. This windfall should have been used to reduce the nation's debt burden, strengthen fiscal buffers, and invest in infrastructure, education, healthcare, and agriculture, rather than borrowed funds.
Atiku further lamented that despite the oil windfall and the removal of the fuel subsidy, millions of Nigerians continue to face worsening hardship, citing recent United Nations findings that about 80% of Nigerians cannot afford a decent meal each day. This is unacceptable, especially considering that the government had promised to invest the subsidy savings in critical sectors such as roads, healthcare, and education.
A Different Approach
An ADC administration under Atiku's leadership would pursue a different approach, with every kobo earned above the budget oil benchmark transparently accounted for and managed under a rules-based fiscal framework. Excess revenues would be deployed to reduce the nation's debt burden, strengthen fiscal buffers, and invest in infrastructure, education, healthcare, and agriculture, ensuring that the benefits of the oil windfall are shared by all Nigerians.
Why This Matters
The Tinubu administration's aggressive domestic borrowing amid an oil windfall raises serious concerns about the government's commitment to transparency and accountability. Nigerians deserve a government that manages national wealth in the public interest, not one that presides over unprecedented opacity while asking future generations to repay debts incurred in the midst of plenty. Atiku's criticisms highlight the need for a more responsible and transparent approach to economic management, one that prioritizes the welfare of all Nigerians.