Former Vice President Atiku Abubakar has criticized the Federal Government over poor economic management, highlighting the decline in external reserves despite rising oil revenues. Nigeria's external reserves fell to $48.45 billion as of April 24, down from $48.72 billion the previous week, representing a cumulative decline of about $1.57 billion since March 11. This comes amid reports of a N5 trillion oil windfall during the same period.
Atiku's Warning
In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku described the development as a troubling trend. The African Democratic Congress (ADC) chieftain stated that the persistent depletion of reserves indicates that the Central Bank of Nigeria (CBN) is injecting liquidity to support the naira, a strategy he characterized as unsustainable.
Atiku noted the contradiction: on one hand, external reserves have declined to $48.45 billion with a cumulative depletion of about $1.57 billion since March 11; on the other hand, Nigeria has reportedly earned N5 trillion from the oil windfall within the same period. He described this as a dangerous pattern of economic mismanagement, calling it a fragile illusion sustained by burning through national savings. He warned that a nation cannot consume its buffers to mask policy failures while ignoring structural weaknesses undermining its currency.
Need for Structural Reforms
The former vice president argued that defending the naira without improving productivity, exports, and investor confidence will worsen the situation, likening the policy to pouring water into a basket. He lamented that the oil windfall has not translated into relief for Nigerians, who are facing high fuel prices, rising transport costs, and inflation. Atiku described the situation as unjust and called for targeted measures to cushion the impact of fuel price increases, stabilize food supply, and support vulnerable Nigerians.
BMI Report on Oil Revenue
Meanwhile, BMI, a unit of Fitch Solutions, in its April Sub-Saharan Africa market assessment, reported that Nigeria could record an additional N6.8 trillion in oil revenue in 2026 as rising crude prices driven by the ongoing United States-Iran conflict strengthen the country's fiscal outlook. The report raised Nigeria's 2026 growth forecast, highlighting how higher global oil prices, alongside ongoing domestic reforms, are expected to support government revenues and improve macroeconomic stability despite lingering inflationary pressures.
BMI estimates that Nigeria's fiscal position will benefit significantly from higher oil prices, with Brent crude now projected to average $78 per barrel in 2026. This is expected to deliver a fiscal windfall of about N6.8 trillion, or just over one percent of GDP. Nigeria's real GDP growth forecast for 2026 was increased from 4.3 percent to 4.4 percent. Petrol prices in Nigeria have risen by over 50 percent since the escalation of the Middle East conflict. BMI noted that Nigeria was less exposed to economic disruptions from the conflict than other Sub-Saharan African economies, supporting its improved growth outlook.
