Former Vice President Atiku Abubakar has criticised the Federal Government’s plan to raise funds through a Vienna-listed bond, questioning the need for additional borrowing amid increased government revenues and rising debt obligations.
In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku alleged that the government had failed to provide Nigerians with a clear account of increased revenues, subsidy savings and additional earnings from higher crude oil prices.
He argued that the proposed financing arrangement was particularly troubling at a time when Nigerian manufacturers are facing soaring energy costs, with diesel prices exceeding N2,000 per litre in some industrial locations.
Atiku cited data attributed to the Manufacturers Association of Nigeria, which reportedly showed that energy-related expenses now account for more than half of manufacturers’ operating costs. He added that manufacturers spent about N1.34 trillion on alternative energy in 2025, while expenditure in the first half of 2026 had already approached the previous year’s figure.
“No economy can industrialise under those conditions,” Atiku said, warning that manufacturers would ultimately be forced to increase prices, reduce production, lay off workers or shut down operations, with Nigerians bearing the consequences through higher prices and fewer jobs.
The former vice president questioned why the government was seeking additional financing despite claims of increased revenues, higher Federation Account Allocation Committee (FAAC) disbursements, substantial savings from fuel subsidy removal and crude oil prices exceeding the benchmark used for the 2026 budget.
He recalled that ESME Limited, a special-purpose vehicle involving Nigerian public institutions and Austrian interests, was preparing to issue bonds on the Vienna market to finance investments in Nigeria.
However, Atiku said Nigerians had not been provided with sufficient details about the proposed transaction, including its size, borrowing cost, repayment terms and the extent of the Federal Government’s financial exposure.
He also raised concerns over reported domestic borrowing of N24.7 trillion by the Federal Government in the first eight months of 2026, compared with N12.98 trillion during the corresponding period of 2025.
According to Atiku, the reported increase in borrowing was difficult to reconcile with the government’s revenue claims and the fact that crude oil prices had risen substantially above the 2026 budget benchmark of $64.85 per barrel.
“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?” he asked.
Atiku said the Federal Government must publish the full details of the Vienna transaction, including the amount to be raised, currency, interest rate, tenure and repayment mechanism.
He also demanded clarification on whether the government would provide a sovereign guarantee, assume contingent liabilities or otherwise expose taxpayers to future financial obligations.
The former vice president further warned that excessive government borrowing from the domestic market could make credit more expensive for manufacturers, farmers and small businesses, forcing them to compete with the government for limited capital.
He said the situation was being compounded by rising energy and logistics costs and weakened consumer purchasing power.
Atiku therefore called on President Bola Tinubu’s administration to provide Nigerians with a comprehensive reconciliation of increased revenues, subsidy savings, additional oil receipts, borrowing and outstanding debt obligations.
“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,” he said.
