Atiku challenges FG over oil windfall, rising borrowing

Former Nigerian Vice President Atiku Abubakar has directly challenged the Federal Government, demanding an explanation for its substantial domestic borrowing amidst what he describes as an estimated ₦7.98tn oil revenue windfall. Abubakar questioned the administration's fiscal discipline, pointing out that the government continues to borrow heavily even as crude oil prices significantly exceed the 2026 budget benchmark.

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Nigerians deserve a full accounting of this windfall. Where has the money gone? Why is there no transparent disclosure of the proceeds from excess crude sales? Why is government borrowing heavily when oil revenues are significantly above budget projections?

In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Abubakar accused the current administration of operating without transparency. He insisted that Nigerians are entitled to a comprehensive account of all revenues generated from higher international oil prices. The former Vice President noted that the Federal Government had already secured approximately ₦5tn from the domestic bond market in the first half of 2026. This figure represents nearly 80 percent of the total borrowed during the same period in 2025, a pace he described as aggressive and typically associated with sharp declines in government revenue.

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The exact opposite is the case.

Abubakar highlighted that the 2026 Appropriation Act had pegged crude oil at $92 per barrel, with Nigerian crude typically selling at a premium. He posed two critical questions: "First, why is a government enjoying such an extraordinary oil windfall borrowing at almost twice last year’s pace as though the nation were in financial distress? Second, where is the money?" He calculated that the difference between the budget benchmark and prevailing oil prices translates to an additional $5.76 billion, or approximately ₦7.98tn, in excess revenue daily over a 135-day period.

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Why is a government enjoying such an extraordinary oil windfall borrowing at almost twice last year’s pace as though the nation were in financial distress? Second, where is the money?

"Nigerians deserve a full accounting of this windfall. Where has the money gone? Why is there no transparent disclosure of the proceeds from excess crude sales? Why is government borrowing heavily when oil revenues are significantly above budget projections?" the statement further read. Abubakar criticized the administration's failure to provide clear information on managing these excess oil earnings, contrasting it with previous governments that utilized mechanisms like the Sovereign Wealth Fund. He argued that a government unable to account for such a significant windfall lacks the moral authority to continue increasing the nation's debt. Additionally, Abubakar stated that the benefits of higher oil earnings and the removal of fuel subsidies have not translated into tangible improvements in the living conditions of Nigerians.

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A government that cannot explain what it has done with an estimated ₦7.98tn in additional oil receipts has no moral authority to continue plunging the country deeper into debt.