Atiku faults Tinubu government’s account of subsidy savings, debt

FORMER Vice-President Atiku Abubakar has challenged key economic claims made by the Federal Government on fuel subsidy savings, public debt, workers’ welfare and education funding, arguing that official records contradict the administration’s narrative.

Abubakar, the presidential candidate of the African Democratic Congress (ADC) in the 2027 poll, made the remarks in a statement issued on Sunday, August 2, by his spokesman, Phrank Shaibu.

The statement was in response to recent comments by the former Chairman of the Presidential Fiscal Policy and Tax Reforms Committee and the current Finance Minister, Taiwo Oyedele, who defended the Tinubu administration’s economic policies.

The former vice-president argued that the government’s claim that savings from the removal of petrol subsidy were being used to reduce inherited liabilities was inconsistent with figures released by the Central Bank of Nigeria (CBN).

He said that while the Federal Government’s exposure to the CBN stood at about ₦26.9 trillion when President Bola Tinubu assumed office in May 2023, it had risen to over ₦40.38 trillion.

”As of May 2023, when President Tinubu assumed office, the Federal Government’s exposure to the Central Bank of Nigeria stood at approximately ₦26.9 trillion. Today, that exposure has ballooned to over ₦40.38 trillion.

”This administration has not reduced its indebtedness to the CBN. It has merely changed the label on the debt by converting Ways and Means advances into Treasury Bills and bonds while simultaneously piling up fresh obligations. That is debt restructuring – not debt repayment,” he said.

According to Abubakar, the increase showed that government indebtedness had grown despite claims that subsidy savings were being deployed to reduce debt.

He added that converting the CBN’s Ways and Means advances into Treasury Bills and bonds amounted to debt restructuring rather than repayment.

The ADC presidential candidate also disputed the government’s position that subsidy savings had improved workers’ welfare.

He argued that the Federal Government had yet to fully implement the new national minimum wage, adding that the 40 per cent peculiar allowance linked to the wage adjustment and the promised wage award remained outstanding.

Abubakar further questioned the administration’s claim that subsidy savings were funding the Nigerian Education Loan Fund (NELFUND).

He said the scheme’s managing director had previously stated that it received a ₦50 billion intervention from recovered funds by the Economic and Financial Crimes Commission (EFCC), asking why the government was attributing the funding to subsidy savings.

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On debt servicing, Abubakar blamed the administration’s borrowing and monetary policies for rising debt costs, arguing that higher interest rates had increased borrowing costs for both the government and the private sector.

He also criticised the administration’s assessment of its economic performance, citing rising food prices, inflation, unemployment, naira depreciation and worsening poverty as indicators that many Nigerians were yet to experience the benefits of the government’s reforms.

The former vice-president urged the Federal Government to address the country’s economic challenges with what he described as honesty and accountability rather than relying on public relations.

Abubakar statement comes days after the Minister of Finance and Coordinating Minister of the Economy defended the Tinubu administration’s economic reforms, arguing that the removal of fuel subsidy and other fiscal measures prevented Nigeria’s economy from sliding into crisis.

Oyedele argued that the reforms had improved fiscal stability, enabled the government to fund social interventions, while describing Nigeria’s debt profile as manageable relative to its economy. He also urged Nigerians to assess government policies based on facts rather than public sentiment.

Mustapha Usman is an investigative journalist with the International Centre for Investigative Reporting. You can easily reach him via: musman@icirnigeria.com. He tweets @UsmanMustapha_M