Former Vice President Atiku Abubakar has warned President Bola Tinubu against what he described as reckless management of Nigeria’s oil windfall and external reserves, cautioning that the country risks a severe fiscal crisis if current policies persist.
- +Atiku cautions Tinubu against oil windfall misuse, reserve depletion
Speaking through his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku raised concerns over what he called a contradiction in the economy, declining external reserves despite a surge in oil revenue.
Speaking through his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku raised concerns over what he called a contradiction in the economy, declining external reserves despite a surge in oil revenue.
According to him, Nigeria’s reserves dropped by about $1.57 billion between March and late April, even as the country reportedly recorded a N5 trillion oil windfall within the same period.
“Defending the naira without fixing productivity, exports, and investor confidence is akin to pouring water into a basket,” Atiku said.
He described the current exchange rate management as “a fragile illusion sustained by burning through national savings.”
Atiku, a chieftain of the African Democratic Congress (ADC) argued that the continued drawdown of reserves suggests that the Central Bank of Nigeria is injecting liquidity into the foreign exchange market to create artificial stability rather than addressing structural weaknesses.
Atiku maintained that such interventions cannot replace long-term reforms needed to restore confidence in the naira.
He also described the situation as a troubling paradox, noting that rising oil revenues , driven largely by external geopolitical factors, have not translated into relief for ordinary Nigerians, who continue to grapple with high fuel costs, inflation, and rising transport fares.
“This paradox is both unjust and unsustainable,” he said.
The former Presidential candidate urged the federal government to ensure that the oil windfall is not diverted to recurrent expenditure or political patronage, but instead used for targeted interventions to cushion the impact of economic hardship, stabilise food supply, and support vulnerable citizens.
He further called for a shift away from reserve depletion as a strategy for defending the naira, recommending investments in domestic refining, critical infrastructure, and non-oil exports as more sustainable solutions.
“Nigeria’s external reserves are not a political war chest, and this oil windfall is not a license for fiscal indiscipline. Nigerians deserve honesty, discipline, and foresight, not illusion, waste, and economic brinkmanship,” Atiku said.
