Former Vice President Atiku Abubakar has raised concerns over what he described as troubling contradictions in Nigeria's economy, warning that the country is depleting its external reserves despite enjoying a significant oil revenue windfall.
Reserves Decline Amid Windfall
Atiku noted that Nigeria's external reserves declined to $48.45 billion as of April 24, down from $48.72 billion the previous week, with a cumulative depletion of about $1.57 billion since March 11. This, he said, comes at a time when the country reportedly earned about ₦5 trillion in oil windfall within the same period.
In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku described the situation as a sign of dangerous economic mismanagement. He argued that the persistent drawdown of reserves suggests that the Central Bank of Nigeria is injecting liquidity to defend the naira artificially.
Fragile Illusion of Stability
“This is not stability; it is a fragile illusion sustained by burning through national savings,” he said. “A nation cannot deplete its buffers to mask policy failures while ignoring the structural weaknesses undermining its currency.” According to him, defending the naira without improving productivity, boosting exports, and restoring investor confidence is unsustainable. “It is akin to pouring water into a basket,” he added.
Windfall Not Reaching Citizens
Atiku also expressed concern that the oil windfall—driven largely by external geopolitical developments rather than domestic policy—has not translated into relief for ordinary Nigerians. He noted that citizens continue to face rising fuel prices, increased transportation costs, and high inflation, despite growing government revenues. “This paradox is both unjust and unsustainable,” he said.
Key Recommendations
The former vice president issued two key recommendations. First, he urged the government not to squander the windfall on recurrent expenditure or political patronage, but to channel it into targeted interventions that would cushion the impact of fuel price increases, stabilise food supply, and support vulnerable populations. “To do otherwise is to profit from the suffering of the people while offering them nothing in return,” he said.
Second, Atiku called on the government to halt what he described as the reckless defence of the naira through reserve depletion, and instead invest in long-term economic fundamentals. He stressed the need to prioritise domestic refining capacity, critical infrastructure, and policies that promote non-oil exports and restore investor confidence. “The naira cannot be defended by force; it must be strengthened by fundamentals,” he said.
Test of Leadership
Atiku further cautioned that economic windfalls are tests of leadership, warning against short-term fiscal decisions. “Nigeria's external reserves are not a political war chest, and this oil windfall is not a licence for fiscal indiscipline,” he said. He added that Nigerians deserve transparency, discipline, and forward-looking economic management.
