Presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar has accused the federal government of fiscal indiscipline, warning that its local borrowing is denying Nigerian businesses of credit, killing jobs and compounding the cost-of-living crisis.
In a statement issued by his senior special assistant on public communication,Phrank Shaibu, the former vice president said he volume of government borrowing was “particularly” concerning given the increase in crude oil prices above the benchmark used for the 2026 budget.
He said the federal government borrowed N24.7 trillion from the domestic market between January and August 2026, representing a 90.5 percent rise from the N12.98 trillion borrowed during the corresponding period in 2025.
“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,” the statement reads.
“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 ₦24.7 trillion between January and August 2026.”
Atiku stated that the increased borrowing was difficult to defend because the administration of President Bola Tinubu had removed the fuel subsidy, floated the naira and benefited from higher nominal government revenues.
“Tinubu removed fuel subsidy and told Nigerians the sacrifice would free up money. He floated the naira and government revenues consequently received a massive nominal boost,” the former vice-president said.
“Oil prices have risen sharply. Revenues have improved. Yet the borrowing has not gone down — it has exploded. So the question Nigerians must ask again is very simple: where is the money going?”
He said government borrowing is also in competition with businesses for access to credit, contending that credit to the government rose by 43 percent, compared with 9.6 percent growth in credit to the private sector.
“Government credit is expanding about 4.5 times faster than credit to businesses.
“But under Tinubu’s economic policy, the exact opposite is happening.
“The public sector is exerting an increasingly parasitic effect on the private sector — consuming the credit, capital and financial oxygen that productive businesses desperately need.”
Continuing, Atiku said,v“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?” he asked.
“The result is obvious: businesses pay more for credit, expansion is postponed, factories struggle, jobs disappear and the cost of producing everything from food to household goods rises,” he said.
“This government is not merely borrowing money; it is borrowing away the future of Nigerian businesses.”
