Former Vice President Atiku Abubakar has criticised the Federal Government’s proposed Vienna-listed bond arrangement, accusing the administration of increasing its appetite for borrowing despite rising government revenues and higher crude oil prices.
Mr Atiku said it was difficult to justify fresh borrowing at a time when Nigerian manufacturers were battling soaring energy costs, expensive credit and declining consumer purchasing power.
In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku said manufacturers were spending as much as half of their operating costs on energy, while diesel prices had risen above N2,000 per litre in some industrial locations.
He questioned why the Federal Government was seeking additional financing abroad when it had repeatedly highlighted increased revenues and savings from the removal of fuel subsidy.
“This is the central contradiction Nigerians are entitled to question. Government says revenues are up. It says subsidy removal has saved enormous sums. Oil prices are substantially above the benchmark used for the 2026 budget.
“Yet borrowing is accelerating, factories are suffocating under energy costs and ordinary Nigerians are still struggling to afford the basics.
“Before the Tinubu administration goes to Vienna in search of more money, it must first tell Nigerians what has happened to the money already coming in,” Atiku said.
He said the difficulties confronting manufacturers provided a clear indication of the wider challenges facing the economy.
According to him, diesel prices have risen to about N2,000 per litre and above in some industrial locations, while the Manufacturers Association of Nigeria has said energy-related expenses now account for more than half of manufacturers’ operating costs.
He added that manufacturers reportedly spent about N1.34 trillion on alternative energy in 2025, while expenditure in the first half of 2026 had already approached the same level.
“Consider what that means for a factory in Lagos, Kano, Aba or Nnewi. Before the manufacturer pays workers, buys raw materials, transports finished products, services bank loans or makes a profit, a huge part of the operating budget has already disappeared into simply keeping the machines running.
“No economy can industrialise under those conditions,” Atiku said.
He warned that manufacturers facing such costs would ultimately be forced to increase prices, reduce production, lay off workers or shut down operations.
“Whichever option he takes, ordinary Nigerians pay through higher prices, fewer jobs and reduced household income,” he added.
Atiku also raised concerns over the proposed Vienna financing arrangement involving ESME Limited, a special-purpose vehicle involving Nigerian public institutions and Austrian interests.
He said Nigerians had yet to be given sufficient details on the proposed transaction, including its size, cost, repayment terms and the extent of the Federal Government’s exposure.
“We are told that ESME Limited, a special-purpose vehicle involving Nigerian public institutions and Austrian interests, is preparing to issue bonds on the Vienna market to finance investments in Nigeria.
“But Nigerians have not been given a sufficiently clear picture of the financial structure, the size of the proposed transaction, the cost of borrowing, the repayment terms or the extent of the Nigerian government’s exposure,” he said.
The former vice president said the issue raised questions about transparency in the management of the country’s finances.
He noted that while the government had reported increased revenues, higher FAAC allocations and savings from subsidy removal, its borrowing had continued to rise.
