Former Vice-President Atiku Abubakar has criticised the Bola Tinubu administration over its rising domestic borrowing, alleging that the government is crowding out businesses from the credit market and worsening unemployment and the cost-of-living crisis.

Atiku, the presidential candidate of the African Democratic Congress (ADC), made the allegation in a statement issued on Monday by his Senior Special Assistant on Public Communication, Phrank Shaibu.

He described the Federal Government’s borrowing pattern as alarming, particularly in the face of rising crude oil prices and increased government revenues.

According to him, the Federal Government borrowed N24.7 trillion from the domestic market between January and August 2026, a 90.5 per cent increase from the N12.98 trillion borrowed during the same period in 2025.

Atiku noted that the 2026 budget was based on an oil price benchmark of $64.85 per barrel, arguing that the rise in crude prices above the benchmark should have reduced the government’s need for borrowing.

“Yet, instead of this windfall translating into lower borrowing, stronger businesses and relief for Nigerians, the Federal Government went into the domestic market and borrowed a staggering ₦24.7 trillion between January and August 2026,” he said.

The former vice-president also questioned the continued borrowing despite the removal of fuel subsidies and the floating of the naira, which he said had resulted in a significant increase in nominal government revenues.

“Oil prices have risen sharply. Revenues have improved. Yet the borrowing has not gone down — it has exploded. So the question Nigerians must ask again is very simple: where is the money going?” he asked.

Atiku argued that the government’s growing appetite for domestic credit was limiting the funds available to businesses.

He cited a 43 per cent increase in credit to government compared with 9.6 per cent growth in credit to the private sector, saying government borrowing was expanding about 4.5 times faster than credit to businesses.

According to him, the trend is undermining the private sector’s ability to invest, expand operations and create jobs.

“Atiku said private-sector performance should be one of the key measures of the effectiveness of economic policies, noting that successful reforms should make it easier for businesses to access capital, increase production and employ more workers.

“But under Tinubu’s economic policy, the exact opposite is happening,” he said.

He described the situation as a growing burden on the private sector, alleging that government was consuming credit and capital needed by productive businesses.

Atiku further argued that banks would naturally favour lending to government at attractive interest rates and lower perceived risk rather than extending cheaper credit to businesses.

“When banks can lend to government at attractive, risk-free rates, why would they lend cheaply to the manufacturer in Aba, the furniture maker in Kaduna, the agro-processor in Kano or the young entrepreneur in Lagos?” he asked.

He warned that high borrowing costs could force businesses to postpone expansion, reduce production and cut jobs, while increasing the cost of goods and services.

“The result is obvious: businesses pay more for credit, expansion is postponed, factories struggle, jobs disappear and the cost of producing everything from food to household goods rises,” Atiku said.

“This government is not merely borrowing money; it is borrowing away the future of Nigerian businesses.”

The ADC presidential candidate said Nigeria could not achieve sustainable economic growth if government continued to dominate the domestic credit market.

He said businesses needed affordable financing to expand production, farmers required access to credit to increase output, and entrepreneurs needed capital to create jobs.

Atiku promised that his administration would pursue fiscal discipline, reduce waste, prioritise productive expenditure and gradually reduce the government’s reliance on domestic borrowing.

“My administration will impose fiscal discipline, cut waste, prioritise productive expenditure and progressively reduce the government’s suffocating dependence on the domestic credit market,” he said.

“Government must make room for the private sector to breathe, invest, produce and employ.”

President Tinubu had, however, defended the government’s borrowing policy in April, saying borrowing was not inherently negative if the government could generate sufficient revenue to repay its obligations.

“If we have to borrow, we borrow. Borrowing is not leprosy; we just have to work hard to be able to pay for it,” Tinubu said.