Former Vice President, Atiku Abubakar, has raised concerns over the continued decline in Nigeria’s external reserves despite what he described as a huge crude oil windfall caused by the crisis in the Middle East.
NOP NIGERIA reports that Atiku, in a statement issued on Sunday, May 3, by his spokesperson, Phrank Shaibu, said the development had raised serious questions about the management of the economy under President Bola Tinubu.
He said it was contradictory that Nigeria’s reserves were falling at a time the country should be benefiting from higher crude oil prices.
Reserves Drop To $48.37 billion.
According to data from the Central Bank of Nigeria, Nigeria’s foreign reserves dropped to $48.37 billion as of April 29, 2026.
The decline came despite what Atiku described as a ₦5 trillion oil windfall within the period.
Crude oil prices had surged to about $101 per barrel for West Texas Intermediate and $108 per barrel for Brent crude, after trading below $70 per barrel in early February 2026.
Reacting to the figures, Atiku said the situation was a contradiction that required urgent explanation from the Tinubu administration.
The former Vice President said the falling reserves showed what he called a dangerous pattern of economic mismanagement.
He accused the government of creating an impression of stability by drawing down national savings instead of addressing the deeper weaknesses affecting the economy.
The statement read, “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. Defending the naira without fixing productivity, exports, and investor confidence is akin to pouring water into a basket.”
Atiku said the Federal Government must stop relying on short-term measures that do not address the country’s productivity, export base and investor confidence.
Don’t Squander Windfall, Atiku Warns
Atiku issued two warnings to the Federal Government on how the oil windfall should be handled.
He said the revenue must not be wasted on recurrent expenditure or political patronage, but should be used to reduce the burden on Nigerians.
He said, “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.”
Atiku said Nigerians were already dealing with high living costs and deserved direct relief from any gains recorded from higher oil prices.
Ex-VP Faults Naira Defence
Atiku also urged the government to stop what he described as the reckless defence of the naira through reserve depletion.
He said the Federal Government should instead invest the windfall in areas that would strengthen the economy in the long term.
He stated, “Second, the government must abandon the reckless defense 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. The naira cannot be defended by force; it must be strengthened by fundamentals.”
He said the country’s currency could only become stronger when the economy became more productive and attractive to investors.
Atiku said oil windfalls often reveal the quality of leadership in any country.
He warned that Nigeria’s external reserves must not be treated as a political fund or used to support what he called short-term optics.
He added, “Let it be said without equivocation: windfalls are tests of leadership. They reveal whether a government is committed to sustainable nation-building or addicted to short-term optics. Nigeria’s external reserves are not a political war chest, and this oil windfall is not a license for fiscal indiscipline.
“Nigerians deserve honesty, discipline, and foresight, not illusion, waste, and economic brinkmanship.”
The former Vice President urged the Tinubu administration to explain why reserves continued to decline despite improved oil earnings and to adopt policies that would strengthen the economy beyond temporary crude oil gains.
