Key Takeaways
- Former Vice-President Atiku Abubakar asserts that the substantial outflow of foreign portfolio investment (FPI) signifies a 'vote of no confidence' in President Tinubu's economic policies.
- Nigerian Exchange data for January to July 2023 (or 2024, assuming a typo in the source) shows a net FPI outflow of ₦266.07 billion, a sharp increase from the previous year.
- Atiku highlights a 905% surge in federal government domestic borrowing, reaching ₦24.7 trillion in eight months, which he claims is crowding out the private sector.
- The opposition leader argues that despite government claims of reforms, key economic indicators like inflation, credit access, and investor confidence are deteriorating.
- He advocates for an economic policy focused on private-sector production and household affordability, contrasting it with the current administration's 'government consumption' approach.
Former Vice-President Atiku Abubakar has launched a scathing critique of President Bola Tinubu's economic stewardship, declaring that the significant exodus of foreign portfolio investment (FPI) from Nigeria represents a 'damning vote of no confidence.' In a statement released by his Senior Special Assistant on Public Communication, Phrank Shaibu, Abubakar emphasized that recent data from the Nigerian Exchange should be a grave concern for every citizen.
Abubakar underscored the principle that 'capital votes with its feet,' pointing to alarming figures. Between January and July of the current year (likely 2023 or 2024, given the context), foreign investors injected ₦513.36 billion into the Nigerian equities market but simultaneously withdrew a staggering ₦779.43 billion. This resulted in a substantial net outflow of ₦266.07 billion. This net outflow is approximately 11.7 times greater than the ₦22.68 billion recorded during the corresponding period in the previous year, signaling a dramatic shift in investor sentiment.
The former Vice-President elaborated on the implications, stating, 'This is not merely an investment statistic. It is a confidence verdict on the Tinubu economy.' He painted a grim picture of the nation's financial landscape, likening it to a struggling market where 'shop owners are broke, customers have no money, the landlord keeps borrowing from everybody, and the few outsiders who brought capital are quietly carrying their money away.' He concluded that 'only a foolish landlord would stand at the gate and call that prosperity. That is Tinubu’s economy.'
Adding to his concerns, Abubakar highlighted the recent disclosure that the Federal Government's domestic borrowing surged by an astounding 905% to ₦24.7 trillion in just eight months. Concurrently, credit extended to the government grew more than four times faster than credit to the private sector. This trend, he argued, clearly illustrates that 'Tinubu’s government is crowding Nigerian businesses out of the domestic credit market while foreign investors are taking their money and heading for the exit.'
The economic challenges, according to Abubakar, extend beyond capital flight. He noted that 'local businesses are suffocating. Foreign capital is fleeing. Government borrowing is exploding. Food prices have skyrocketed. Transportation costs are crushing families.' Despite these harsh realities, he criticized the administration for 'continuing to congratulate itself on economic reforms' and having 'the audacity to celebrate itself for presiding over an economic catastrophe of its own making.'
Abubakar questioned the administration's claims of recovery, asserting, 'An economy cannot be said to be recovering when entrepreneurs cannot afford credit, manufacturers struggle with operating costs, households are poorer and investors remain unwilling to keep their money in the country.' He stressed that while the government may 'manufacture impressive speeches and celebrate headline numbers,' investors are focused on fundamental factors such as 'policy consistency, inflation, purchasing power, predictable regulation and the ability to earn sustainable real returns.'
Their collective verdict, he concluded, is 'increasingly unmistakable: take the money and run.' Abubakar called for an economic policy that 'restores confidence, lowers the cost of doing business, makes energy and transportation affordable, encourages production and allows the private sector — rather than government borrowing — to drive growth.' He drew a clear distinction between what he termed 'Tinubu’s economics of government consumption' and his own proposed 'economics of private-sector production and household affordability.' He reiterated that 'you cannot borrow the private sector dry, impoverish consumers and then advertise yourself to the world as an investment destination. The investors are already answering the propaganda. They are leaving.'
Why This Matters
The significant outflow of foreign portfolio investment, coupled with escalating government borrowing, signals deep-seated economic challenges that could undermine Nigeria's long-term growth prospects and investor confidence. This critical assessment from a prominent opposition figure underscores the urgent need for transparent economic policies that prioritize private sector growth and address the cost of living crisis affecting millions of Nigerians.
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