Former Vice President Atiku Abubakar has expressed concern over the Federal Government’s level of domestic borrowing, noting that it may be limiting credit available to Nigerian businesses at a time of rising oil prices.
Reacting on Monday through his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku said the borrowing trend deserved public scrutiny given improvements in oil revenue in 2026.
“At the beginning of this fiscal year, the Federal Government budgeted on an oil benchmark of $64.85 per barrel. Crude oil prices have since risen substantially above that benchmark,” Atiku stated.
He noted that despite the higher revenue, government borrowing from the domestic market between January and August 2026 reached N24.7 trillion, which is 90.5 per cent higher than the N12.98 trillion borrowed in the same period in 2025.
Atiku said the removal of fuel subsidy and the unification of the exchange rate had resulted in higher nominal government revenues, and asked for clarity on how the additional resources and subsidy savings are being applied.
“What Nigerians need to know is how the increased revenues are being deployed, and why borrowing has continued to rise despite the improved fiscal position,” he said.
The former Vice President also cited data showing faster growth in credit to government compared to credit to the private sector.
“Credit to government grew by 43 per cent, while credit to the private sector grew by 9.6 per cent. When government takes a larger share of available credit, it can make borrowing more expensive for businesses,” he stated.
Atiku argued that access to affordable credit is critical for manufacturers, agro-processors and entrepreneurs to expand, create jobs and reduce production costs.
“Nigeria’s economy grows when businesses can access capital to invest, produce and employ. Government should create fiscal space for the private sector to thrive,” he said.
The presidential candidate of the African Democratic Congress (ADC) outlined that an ADC administration would focus on fiscal discipline, cutting waste, prioritizing productive expenditure, and gradually reducing reliance on domestic borrowing.
“After three years of economic reforms, Nigerians deserve to see the impact of subsidy savings, additional revenues and higher oil earnings in their daily lives through lower costs and more opportunities,” Atiku added.
He called on government to provide a transparent account of revenues, savings and expenditures, and to take steps that ensure the private sector has adequate access to credit.