Former Nigerian Vice President Warns Against Depleting Reserves to Support Currency

Former Vice President Atiku Abubakar stated that Nigeria's government should cease using external reserves to support the naira. He noted that reserves fell to $48.45 billion as of April 24 from $48.72 billion the previous week, a decline of approximately $1.57 billion since March 11.

This occurred even as the country earned a 5 trillion naira oil windfall during the same period. Atiku, speaking through his Senior Special Assistant on Public Communication Phrank Shaibu, said defending the naira without addressing productivity, exports, and investor confidence is ineffective.

He added that interventions by the Central Bank of Nigeria aim to create an appearance of stability rather than achieving genuine monetary stability.

Atiku stated that structural reforms are necessary for lasting confidence in the naira. He described the situation as a paradox where an oil windfall coincides with rising pump prices, transport costs, and inflation affecting ordinary Nigerians. The windfall, he said, results from external geopolitical factors rather than government actions.

He demanded that the windfall not be used for recurrent expenditure or political purposes. Instead, Atiku called for interventions to mitigate fuel price increases, stabilize food supply chains, and protect vulnerable populations.

Atiku urged the government to invest the windfall in domestic refining capacity, critical infrastructure, non-oil export promotion, and policies to restore investor confidence. He stated that currency strength based on interventions rather than fundamentals is not sustainable.