…Former vice-president accuses Tinubu administration of fiscal indiscipline
…Says heavy borrowing is crowding out private-sector credit

Former Vice-President Atiku Abubakar has criticised the Federal Government’s borrowing, accusing the Bola Tinubu administration of fiscal indiscipline and of crowding Nigerian businesses out of the domestic credit market.

Atiku said it was particularly troubling that the government had continued to borrow heavily despite higher crude oil prices and increased government revenues.

In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku said the Federal Government borrowed N24.7 trillion from the domestic market between January and August 2026.

He said the figure represented a 90.5 per cent increase over 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.

“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,” he said.

Atiku described the borrowing as evidence that the government was failing to manage the country’s finances effectively.

“This is not fiscal management. This is a government borrowing like drunken sailors in the middle of a revenue windfall,” he said.

He argued that the removal of fuel subsidy, the naira’s float and higher crude oil prices had increased government revenues, but had not translated into reduced borrowing.

“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. Oil prices have risen sharply. Revenues have improved. Yet the borrowing has not gone down — it has exploded,” he said.

Atiku questioned how the additional revenues were being deployed.

“So the question Nigerians must ask again is very simple: where is the money going?” he asked.

The former vice-president also raised concerns over the impact of government borrowing on private-sector access to credit.

He claimed that credit to government had grown by 43 per cent, compared with 9.6 per cent growth in credit to the private sector.

“Government credit is expanding about 4.5 times faster than credit to businesses,” he said.

According to Atiku, the figures suggested that the government was competing directly with businesses for available funds in the banking system.

He said the development was undermining the ability of manufacturers, farmers and entrepreneurs to secure affordable financing for expansion and job creation.

“When banks can lend to government at attractive, risk-free rates, why would they lend cheaply to the manufacturer in Aba, the furniture maker in Kaduna, the agro-processor in Kano or the young entrepreneur in Lagos?” he asked.

Atiku said the consequences included higher borrowing costs for businesses, delayed investments, pressure on manufacturers and higher production costs.

“This government is not merely borrowing money; it is borrowing away the future of Nigerian businesses,” he said.

He argued that economic reforms should be judged partly by their impact on the private sector, including business expansion, investment, employment and access to capital.

“But under Tinubu’s economic policy, the exact opposite is happening. The public sector is exerting an increasingly parasitic effect on the private sector — consuming the credit, capital and financial oxygen that productive businesses desperately need,” he said.

Atiku pledged that his administration, if elected, would impose fiscal discipline, reduce waste, prioritise productive expenditure and gradually cut government’s dependence on domestic borrowing.

“Government must make room for the private sector to breathe, invest, produce and employ,” he said.

He also demanded greater accountability over the savings from fuel subsidy removal, increased revenues and higher crude oil prices.

“After three years of sacrifice, Nigerians deserve to see what happened to the subsidy savings, the additional revenues and the crude-oil windfall.

“You cannot collect more, earn more and still borrow more — while asking hungry Nigerians to sacrifice more. Something is fundamentally wrong with that equation,” he added.