Atiku Fires Back: Demands Accountability on Subsidy Windfall Before More Loans

Former Vice President Atiku Abubakar has vehemently challenged President Bola Tinubu’s administration to provide a comprehensive account of its financial dealings, specifically regarding increased government revenues, substantial savings from fuel subsidy removal, and higher crude oil earnings. This demand comes amidst the administration's proposal to seek additional financing through a Vienna-listed bond, a move Atiku views as contradictory to claims of improved national finances.

In a statement released by his senior special assistant on Public Communication, Phrank Shaibu, Atiku questioned the federal government’s persistent appetite for borrowing. He highlighted a central contradiction: the government asserts that revenues are up, fuel subsidy removal has yielded enormous savings, and oil prices are well above the 2026 budget benchmark. Yet, borrowing is accelerating, manufacturers are struggling with exorbitant energy costs and expensive credit, and ordinary Nigerians continue to face difficulties affording basic necessities.

Atiku insisted that before embarking on further borrowing trips, such as the proposed bond arrangement in Vienna, the Tinubu administration must first disclose what has transpired with the funds already generated. He raised serious concerns about the management of Nigeria’s public finances, particularly given the dire circumstances faced by the manufacturing sector.

The former Vice President pointed to the worsening operating environment for Nigerian manufacturers as clear evidence of a disconnect between claimed public revenue improvements and the realities of the real economy. The statement revealed that diesel prices have escalated to approximately ₦2,000 per litre or more in some industrial zones. Consequently, energy-related expenses now constitute over half of manufacturers’ operating costs. Furthermore, manufacturers' expenditure on alternative energy reached about ₦1.34 trillion in 2025, with spending in the first half of 2026 already approaching that level, making it increasingly difficult for businesses to maintain competitiveness.

Atiku warned that such burdens would ultimately compel manufacturers to increase prices, reduce production, lay off workers, or even shut down, with adverse consequences for households. He argued that no economy could industrialize under such unsustainable conditions, as a significant portion of the operating budget is consumed merely by keeping machines running before other essential costs like worker wages, raw materials, and loan servicing are addressed.

Regarding the proposed Vienna-listed bond involving ESME Limited—described as a special-purpose vehicle comprising Nigerian public institutions and Austrian interests—Atiku demanded greater transparency. He called for detailed information on the transaction, including the total amount to be raised, the associated borrowing costs, repayment terms, tenure, currency denomination, and the full extent of the Federal Government’s financial exposure. He specifically questioned whether the Federal Government would provide a sovereign guarantee, assume contingent liabilities, or otherwise expose public finances to obligations that might ultimately fall upon taxpayers.

Concerns were also raised about the significant increase in Federal Government borrowing from the domestic market. According to the statement, domestic borrowing reached ₦24.7 trillion in the first eight months of 2026, a substantial rise compared to ₦12.98 trillion during the corresponding period of 2025. Atiku argued that this escalating domestic borrowing could force private businesses, including manufacturers, farmers, and small businesses, to compete with the state for scarce capital, thereby potentially driving up their financing costs.

The contradiction, Atiku noted, becomes even more glaring when considering crude oil prices. The 2026 budget was benchmarked at $64.85 per barrel, yet crude prices have since moved substantially above this level. Atiku questioned: "If oil earnings are exceeding projections, revenues are rising, and the government has indeed saved the huge sums it claims from subsidy removal, why is the appetite for borrowing increasing rather than falling?"

Using a poignant analogy of a family whose income has increased, its largest monthly expense supposedly removed, and an unexpected windfall received, yet the father continues to borrow from various sources including a new foreign loan, while the household still struggles with basic amenities and rising costs, Atiku underscored the public's right to question the government's financial management. He asserted that Nigerians are entitled to ask: "Where is all the money going?"

Atiku urged the Federal Government to publish a comprehensive reconciliation detailing its earnings, expenditures, and borrowing, along with a clear justification for why additional debt remains necessary. He stressed that the proposed Vienna transaction should not be treated as a mere technical financial arrangement, demanding full disclosure of how much will be raised, in what currency, at what interest rate, for what tenure, and through what repayment mechanism.

Accusing the Tinubu administration of "recklessness" in managing public finances and a pervasive lack of transparency regarding revenues, debt obligations, and refinancing arrangements, Atiku stated that the government's silence on demands from fiscal watchdogs, civil society groups, and opposition figures is "unacceptable." He concluded with a strong call: "Bola Tinubu must open the books. Nigerians deserve to know what has been earned, what has been borrowed, what has been spent, what has been guaranteed and what obligations are being created in their name."