Former Vice President Atiku Abubakar has questioned the Federal Government’s rising debt burden, asking why borrowing continues to increase despite stronger government revenue and higher oil prices.
Atiku said the Federal Government’s domestic borrowing had reached N24.7 trillion between January and August 2026, a 90.5 percent increase from the N12.98 trillion recorded during the same period in 2025.
His comments come amid wider concerns over Nigeria’s fiscal position, with government borrowing rising alongside revenue gains from higher oil prices, tax reforms and the removal of petrol subsidy.
According to Atiku, the government had budgeted for an oil price of $64.85 per barrel for 2026, but crude prices have since traded substantially above that benchmark.
He questioned why the additional revenue had not translated into lower borrowing and greater access to credit for businesses.
‘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,’ Atiku said.
The former vice president also raised concerns about the effect of increased government borrowing on private-sector financing.
He cited Central Bank of Nigeria data showing that government credit grew by 43 percent, compared with 9.6 percent growth in credit to the private sector.
‘When government takes a larger share of available credit, it can make borrowing more expensive for businesses,’ he said.
Atiku argued that manufacturers, agro-processors and other businesses require affordable capital to expand production, create jobs and reduce operating 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 Federal Government’s 2026 budget provides for N68.32 trillion in expenditure against projected revenue of N36.87 trillion, leaving a fiscal deficit of N31.45 trillion. About N29.2 trillion of the deficit is expected to be financed through domestic and external borrowing.
The N24.7 trillion borrowed domestically in the first eight months of the year represents about 84.7 percent of the government’s N29.2 trillion borrowing target for 2026.
The surge in borrowing has also coincided with a widening gap between government and private-sector access to credit.
CBN data showed that government credit rose to N33.92 trillion in July 2026 from N23.69 trillion a year earlier, while private-sector credit increased to N83.43 trillion from N76.13 trillion over the same period.
Analysts have attributed the increased borrowing to the government’s financing requirements, higher expenditure, infrastructure spending and debt-service obligations, while also warning about the pressure that sustained domestic borrowing could place on businesses.
Atiku said the Federal Government should provide a transparent account of increased revenues, subsidy savings and higher oil earnings.
‘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,’ he said.
The Presidency has previously rejected Atiku’s criticism of the government’s debt and fiscal management, arguing that some of his claims relied on outdated data and failed to reflect recent improvements in economic indicators.
The administration has also argued that debt should be assessed alongside the size of the economy, revenue capacity, debt-servicing costs and how borrowed funds are deployed.
Atiku, however, said the government should reduce its dependence on domestic borrowing and create more fiscal space for businesses.
An administration led by the African Democratic Congress, of which Atiku is the presidential candidate, would prioritise fiscal discipline, reduce waste and gradually lower dependence on domestic borrowing, he said.