Nigeria: Govt Benefiting From Higher Oil Prices Must Avoid Reckless Borrowing - Atiku

What the report says

Former Nigerian Vice President Atiku Abubakar has criticized the federal government’s domestic borrowing, saying it reflects fiscal mismanagement and is squeezing credit available to private businesses. The remarks, reported by Daily Trust and distributed by AllAfrica, were issued through his senior special assistant on public communication, Phrank Shaibu. The comments were directed at the Tinubu administration and focused on borrowing trends during 2026.

Atiku argued that the concern is sharper because oil prices have risen above the benchmark used in the 2026 budget, which he said was built on an assumed price of $64.85 per barrel. He said the government borrowed heavily in the domestic market between January and August 2026, while revenue conditions had improved after fuel subsidy removal and naira floating. He also questioned where the extra money is going and said the borrowing pace has not eased despite the stronger oil backdrop.

He further claimed that public borrowing is outpacing lending to the private sector, making it harder for companies to expand, hire and invest. In his view, this leaves banks more inclined to lend to government than to manufacturers, farmers and entrepreneurs. The statement presents the private sector as bearing the cost through tighter credit, weaker growth and higher prices.

Atiku said that if elected, he would pursue stricter fiscal discipline, reduce waste and limit government reliance on domestic borrowing. More broadly, the dispute highlights a recurring Nigerian policy debate over how to balance public finance needs, debt management and private-sector access to credit during periods of oil revenue gains.