‘THIS IS NOT STABILITY’, ATIKU SLAMS FG OVER FALLING RESERVES DESPITE N5TRN OIL WINDFALL
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By ‘Sefiu Ajape
Former Vice President, Atiku Abubakar, on Sunday, warned the Federal Government over what he described as poor economic management, citing the drop in external reserves despite rising oil earnings.
Nigeria’s external reserves fell to $48.45bn as of April 24 from $48.72bn recorded the previous week, representing a decline of about $1.57bn since March 11.
This comes amid reports of a ₦5tn oil windfall within the same period.
In a statement by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku said the development showed a troubling trend.
The chieftain of the African Democratic Congress said the persistent depletion of reserves suggested that the Central Bank of Nigeria was injecting liquidity to support the naira, describing the approach as unsustainable.
He said, “On one hand, the nation’s 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 a ₦5 trillion oil windfall within the same period.
“This contradiction—of dwindling reserves amid rising oil earnings—exposes a dangerous pattern of economic mismanagement.
“This is not stability—it is a fragile illusion sustained by burning through national savings. A nation cannot consume its buffers to mask policy failures while ignoring the structural weaknesses undermining its currency.”
The former vice president said defending the naira without improving productivity, exports, and investor confidence would worsen the situation, likening the policy to “pouring water into a basket.”
Atiku also lamented that the oil windfall had not translated into relief for Nigerians, who are facing high fuel prices, rising transport costs and inflation.
While describing the situation as unjust, he called for targeted measures to cushion the impact of fuel price increases, stabilise food supply and support vulnerable Nigerians.
“First, this windfall must not be squandered on recurrent expenditure or political patronage. It must be deployed deliberately to provide targeted relief to Nigerians—through structured interventions that cushion the impact of fuel price increases, stabilize food supply chains, and support the most vulnerable.
“To do otherwise is to profit from the suffering of the people while offering them nothing in return.
“Second, the government must abandon the reckless defence of the naira through reserve depletion and instead invest this windfall in long-term economic strength. Priority must be given to domestic refining capacity, critical infrastructure, and policies that boost non-oil exports and restore investor confidence,” he said.
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