Atiku slams FG over declining foreign reserves despite ₦5tn oil windfall

Nigeria finds itself at an economic crossroads, and the recent pronouncements by former Vice President Atiku Abubakar serve as a stark warning about the current administration's handling of our nation's finances. The alarming decline in external reserves, even as oil earnings surge, points to a troubling pattern of mismanagement that demands urgent attention.

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On one hand, the nation’s external reserves have declined to $48.45bn —with a cumulative depletion of about $1.57 billion since March 11. On the other hand, Nigeria has reportedly earned a ₦5 trillion oil windfall within the same period. This contradiction—of dwindling reserves amid rising oil earnings—exposes a dangerous pattern of economic mismanagement.

Abubakar rightly identifies the core issue: a $1.57 billion drop in external reserves since March 11, juxtaposed against a reported ₦5 trillion oil windfall in the same timeframe. This isn't just a statistical anomaly; it's a symptom of a deeper malaise. The Central Bank's apparent intervention to prop up the naira by injecting liquidity is, as Abubakar puts it, an unsustainable approach, akin to "pouring water into a basket." This strategy creates a fragile illusion of stability while depleting our national savings and masking fundamental policy failures.

The crux of the matter is that this oil windfall, which should be a boon for the Nigerian people, is not translating into tangible relief. Instead, citizens continue to grapple with high fuel prices, escalating transport costs, and rampant inflation. Abubakar's call for this windfall to be deployed strategically—for targeted relief, bolstering domestic refining capacity, investing in critical infrastructure, and boosting non-oil exports—is not just sound economic advice; it's a moral imperative.

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This is not stability—it is a fragile illusion sustained by burning through national savings. A nation cannot consume its buffers to mask policy failures while ignoring the structural weaknesses undermining its currency.

To squander these resources on recurrent expenditure or political patronage, while the populace suffers, would be unconscionable. We need a shift from defending the naira through reserve depletion to building genuine economic strength. This requires improving productivity, fostering exports, and restoring investor confidence. Anything less is a betrayal of the people's trust and a failure to capitalize on a crucial opportunity for national development.

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First, this windfall must not be squandered on recurrent expenditure or political patronage. It must be deployed deliberately to provide targeted relief to Nigerians—through structured interventions that cushion the impact of fuel price increases, stabilise food supply chains, and support the most vulnerable. Second, the government must abandon the reckless defence of the naira through reserve depletion and instead invest this windfall in long-term economic strength. Priority must be given to domestic refining capacity, critical infrastructure, and policies that boost non-oil exports and restore investor confidence.