Atiku criticises FG over escalating domestic debt profile

Abimbola Joseph

Former Vice-President Atiku Abubakar has launched a sharp criticism of President Bola Tinubu’s administration, accusing the Federal Government of reckless financial management amidst rising national oil revenues.

In a public statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku expressed deep concern over the nation’s escalating debt trajectory, warning that unchecked domestic borrowing poses a grave threat to Nigeria’s broader economic stability.

According to figures highlighted by the former vice-president, the Federal Government secured a staggering ₦24.7 trillion from the domestic credit market between January and August 2026. This figure reflects an extraordinary 90.5 per cent increase compared to the ₦12.98 trillion raised during the corresponding period in 2025.

Atiku noted that this sharp rise in public debt comes at a time when global crude oil prices have consistently traded well above the $64.85 per barrel benchmark established in the 2026 national budget, generating a significant revenue windfall that should have reduced the necessity for additional borrowing.

Atiku argued that key structural economic reforms introduced by the present administration, most notably the deregulation of petrol prices and the foreign exchange market unification, were intended to alleviate fiscal pressures, generate sustainable government earnings, and provide relief to everyday citizens. Instead, he contended, the administration has intensified its reliance on domestic debt markets, effectively starving the private sector of necessary investment capital.

He drew particular attention to the growing disparity in credit allocation, pointing out that government borrowing grew by 43 per cent while commercial credit extended to the private sector expanded by a mere 9.6 per cent, meaning public sector borrowing is expanding roughly four and a half times faster than funding for commercial enterprises.

By offering high-yield, risk-free government securities, public authorities are incentivising commercial banks to lend predominantly to the state rather than to local businesses, manufacturers, and agricultural producers.

Warning that the public sector is exerting a parasitic drag on economic activity, Atiku stressed that sustainable national growth requires a thriving private sector rather than a government that dominates commercial banking halls.

He pledged that a future administration under his leadership would enforce strict fiscal discipline, eliminate unnecessary expenditure, and reduce dependence on local debt markets to allow enterprise to flourish.