Former Vice-President Atiku Abubakar has criticised the federal government over its rising borrowing, questioning why its appetite for debt continues to grow despite increased revenues and savings from the removal of fuel subsidy.
Atiku, the presidential candidate of the African Democratic
Congress (ADC), in a statement issued on Thursday by Phrank Shaibu, his senior
special assistant on public communication, also faulted the proposed
Vienna-listed bond arrangement, saying the government should account for
existing revenues and borrowing before seeking additional financing.
On Tuesday, the federal government announced that it was
working with Austrian authorities and the Vienna Stock Exchange to establish
the bond vehicle, which is intended to raise capital to finance foreign
companies investing in projects in Nigeria.
Atiku Bagudu, minister of budget and economic planning, said
the vehicle, known as the Esme bond, was created after about 18 months of
engagement between Nigerian and Austrian officials, the Vienna Stock Exchange
and fund managers.
“The idea is that this vehicle will float bonds on the
Vienna Stock Exchange in order to fund Austrian companies or other businesses
in green technology, waste to energy, textiles, pharmaceutical, as well as
agricultural companies,” the minister had said.
‘NO ECONOMY CAN INDUSTRIALISE UNDER THOSE CONDITIONS’
Atiku said the situation is “particularly troubling” as
Nigerian manufacturers grapple with rising energy costs, with diesel prices
reaching more than N2,000 per litre in some industrial locations.
According to the former vice-president, the Manufacturers
Association of Nigeria (MAN) has said energy-related expenses now account for
more than half of manufacturers’ operating costs.
He added that manufacturers spent about N1.34 trillion on
alternative energy in 2025, while expenditure in the first half of 2026 had
already approached the same level.
“This is the central contradiction Nigerians are entitled to
question. Government says revenues are up. It says subsidy removal has saved
enormous sums. Oil prices are substantially above the benchmark used for the
2026 budget,” he said.
“Yet borrowing is accelerating, factories are suffocating
under energy costs and ordinary Nigerians are still struggling to afford the
basics.
“Before the Tinubu administration goes to Vienna in search
of more money, it must first tell Nigerians what has happened to the money
already coming in.”
Atiku said Nigerians had not been given sufficient details
about the proposed transaction, including its size, borrowing cost, repayment
terms and the extent of government exposure.
The ADC presidential candidate cited reported figures
showing that federal government borrowing from the domestic market reached
N24.7 trillion in the first eight months of 2026, compared with N12.98 trillion
during the corresponding period of 2025.
He said the increase is concerning because Nigerian
businesses are also competing for increasingly expensive credit.
Atiku also questioned the government’s appetite for
borrowing against the backdrop of crude oil prices exceeding the benchmark used
for the 2026 budget.
He said the government should provide Nigerians with a
transparent reconciliation of its revenues, expenditure, borrowing and
liabilities.
The former vice-president said the rising cost of energy is
worsening the operating environment for manufacturers and threatening jobs and
production.
“No economy can industrialise under those conditions. A
manufacturer spending half of his operating costs on energy will eventually
have to raise prices, cut production, lay off workers or close the factory,” he
said.
“Whichever option he takes, ordinary Nigerians pay through
higher prices, fewer jobs and reduced household income.”
He also argued that heavy government borrowing from domestic
markets could further increase the pressure on private businesses seeking
credit.
“When government absorbs enormous amounts of capital from
the domestic financial market, manufacturers, farmers and small businesses are
forced to compete with the state for increasingly expensive funds,” he added.
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