Vienna-listed Bond: Account For Subsidy Removal Windfall Before Seeking More Loans, Atiku Tells Tinubu

Former Vice President Atiku Abubakar has challenged President Bola Tinubu’s administration to account for increased government revenues, savings from fuel subsidy removal and higher crude oil earnings before seeking additional financing through a proposed Vienna-listed bond.

Atiku, in a statement issued yesterday by his senior special assistant on Public Communication, Phrank Shaibu, questioned why the federal government’s borrowing appetite continues to grow despite what the administration says are substantial improvements in revenue and savings from subsidy reforms.

He said the proposed bond arrangement raises fresh questions about the management of Nigeria’s public finances, particularly at a time when manufacturers are grappling with soaring energy costs and expensive credit.

“This is the central contradiction Nigerians are entitled to question. The 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,” Atiku said.

“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.,” he said.

Manufacturers Under Pressure

Atiku pointed to the worsening operating environment for Nigerian manufacturers as evidence of a disconnect between increased public revenues and conditions in the real economy.

According to the statement, diesel prices have risen to about ₦2,000 per litre or more in some industrial locations, while energy-related expenses now account for more than half of manufacturers’ operating costs.

The statement also cited manufacturers’ spending on alternative energy, putting expenditure at about ₦1.34 trillion in 2025 and saying spending during the first half of 2026 had already approached that level.

Atiku said the burden was making it increasingly difficult for businesses to remain competitive.

“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,” he said.

“No economy can industrialise under those conditions.”

He warned that manufacturers facing such costs would ultimately be forced to raise prices, cut production, lay off workers, or shut down, with the consequences eventually borne by households.

Questions Over Vienna Bond

Atiku also demanded greater disclosure over the proposed Vienna-listed bond involving ESME Limited, which the statement described as a special-purpose vehicle involving Nigerian public institutions and Austrian interests.

He said Nigerians should be provided with details of the proposed transaction, including the amount to be raised, borrowing costs, repayment terms, tenure, currency denomination and the extent of the Federal Government’s financial 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,” the statement said.

“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.”

Atiku further questioned whether the Federal Government would provide a sovereign guarantee, assume contingent liabilities or otherwise expose public finances to obligations that could eventually fall on taxpayers.

Domestic Borrowing Raises Concern

The former vice president also raised concerns over the reported increase in Federal Government borrowing from the domestic market.

According to the statement, Federal Government borrowing from the domestic market reached ₦24.7 trillion in the first eight months of 2026, compared with ₦12.98 trillion during the corresponding period of 2025.

Atiku argued that the increase was particularly concerning because government borrowing could force businesses to compete with the state for scarce capital, potentially pushing up financing costs for manufacturers, farmers and small businesses.

“The contradiction becomes even more difficult to explain when crude oil prices are considered,” he said.

Atiku noted that the 2026 budget was based on an oil price benchmark of $64.85 per barrel, arguing that crude prices had subsequently moved substantially above that level.

“If oil earnings are exceeding projections, revenues are rising, and the government has indeed saved the huge sums it claims from subsidy removal, why is the appetite for borrowing increasing rather than falling?” he asked.

‘Where Is All the Money Going?’

Using the example of a family whose income has increased while its largest monthly expense has supposedly been removed and an unexpected windfall received, Atiku said Nigerians were entitled to question why the government continued to borrow.

“Yet the father continues borrowing from the cooperative, borrowing from the bank and now travels to Vienna to borrow again. Meanwhile, there is no electricity in the house, food is becoming more expensive, and the children are struggling,” he said.

“At some point, every member of that family will ask the same question: where is all the money going?”

Atiku said the Federal Government should publish a reconciliation showing what it has earned, spent and borrowed, as well as why additional debt remains necessary.

He argued that the proposed Vienna transaction should not be treated as a purely technical financial arrangement between government officials and financial advisers.

“Nigerians must know how much is to be raised, in what currency, at what interest rate, for what tenure and through what repayment mechanism,” he said.

Calls for Greater Fiscal Transparency

Atiku accused the Tinubu administration of “recklessness” in managing public finances and criticised what he called a lack of transparency regarding government revenues, debt obligations, and refinancing arrangements.

He said demands from fiscal watchdogs, civil society groups and opposition figures for a comprehensive account of government borrowing, refinancing and contingent liabilities had not received adequate responses.

“That silence is unacceptable,” Atiku said.

“A government that continually asks Nigerians to tighten their belts, endure higher prices and make painful sacrifices cannot, at the same time, refuse to open its own books.”

He argued that the economic consequences of increased government borrowing were already being felt by businesses and households, with manufacturers facing high energy and logistics costs while consumers contend with declining purchasing power.

Atiku said the government could not simultaneously celebrate rising revenues and subsidy savings, benefit from higher oil prices, increase domestic borrowing and seek additional foreign financing without providing Nigerians with a clear explanation of the underlying fiscal arithmetic.

‘Open the Books’

The former vice president called on the Federal Government to publish the full structure of the proposed Vienna transaction and provide a comprehensive reconciliation of increased revenues, subsidy savings, additional oil receipts and rising debt obligations.

“Bola Tinubu must open the books,” Atiku said.

“Nigerians deserve to know what has been earned, what has been borrowed, what has been spent, what has been guaranteed and what obligations are being created in their name.”

He further said, “The question is no longer complicated: if more money is coming in and even more money is being borrowed, where is the money, and where is the paper trail?”