Atiku: Tinubu’s borrowing spree is choking businesses, killing jobs

Former Vice-President Atiku Abubakar has accused the federal government of fiscal indiscipline, warning that its domestic borrowing is starving Nigerian businesses of credit, killing jobs and worsening the cost-of-living crisis.

In a statement issued on Monday by Phrank Shaibu, his senior special assistant on public communication, Atiku, the presidential candidate of the African Democratic Congress (ADC), said the scale of government borrowing was “particularly” alarming given the rise in crude oil prices above the benchmark used for the 2026 budget.

He said the federal government had borrowed N24.7 trillion from the domestic market between January and August 2026, representing a 90.5 percent increase 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 N24.7 trillion between January and August 2026.”

Atiku said the increased borrowing was difficult to justify because the President Bola Tinubu administration 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 competing with businesses for access to credit, arguing that credit to the government grew by 43 percent, compared with 9.6 percent growth in credit to the private sector.