Bayo Onanuga says Nigeria’s economic reforms are producing gains despite hardship, rejecting claims of reckless borrowing and an alleged ₦7.98tn oil windfall

On Sunday, August 2, 2026, the Presidency, through Special Adviser to President Bola Ahmed Tinubu on Information and Strategy, Bayo Onanuga, mounted a robust defence of the administration’s economic reforms in Abuja, rejecting criticism from former Vice President Atiku Abubakar and insisting that the Tinubu economic reforms are beginning to deliver measurable gains despite the severe pressure felt by households and businesses.

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Onanuga’s response came after Atiku, the presidential candidate of the African Democratic Congress, criticised the Federal Government’s handling of the economy, accusing the administration of fiscal recklessness, excessive borrowing and policies that had deepened hardship following the removal of the petrol subsidy.

The former vice president also questioned the government’s management of oil revenues and described the country’s economic direction as increasingly troubling.

In a statement titled, “Facts, Not Fear: A Point-by-Point Response to Atiku Abubakar on Nigeria’s Reform Journey”, Onanuga argued that the former vice president’s assessment relied too heavily on older economic data and failed to account for more recent developments.

“It is curious that in the middle of 2026, the opposition’s principal economic argument remains anchored to developments in the 2024 fiscal year. Economies are dynamic. Reforms are processes, not events,” Onanuga said.

The presidential aide maintained that the economy had recovered from some of the initial shocks associated with the government’s policies, pointing to changes in the country’s gross domestic product as evidence of improvement.

According to Onanuga, Nigeria’s dollar-denominated GDP increased from approximately $253bn following the exchange-rate adjustment to about $377bn, while nominal naira GDP rose from roughly ₦314tn in 2024 to around ₦530tn.

The figures, however, come against a backdrop of persistent concerns over the cost of living, inflation and declining household purchasing power, issues that have continued to shape public debate around the government’s reform agenda.

Onanuga also defended the administration’s borrowing strategy, arguing that Nigeria’s debt remained within manageable levels when measured against the size of the economy.

“Nigeria’s debt-to-GDP ratio remains relatively modest at barely 40 per cent,” he said, adding that the debt service-to-revenue ratio had fallen from nearly 100 per cent in December 2022 to below 60 per cent.

The Presidency also stood firmly by the decision to remove the petrol subsidy, a policy that triggered a sharp increase in transport and living costs but significantly altered the Federal Government’s fiscal position.

Onanuga argued that the policy had resulted in higher allocations to state and local governments through the Federation Account, providing additional resources for subnational administrations.

“The visible consequence of subsidy removal has been the sharp improvement in revenues accruing to states and local governments through the Federation Account,” he said.

The administration’s tax reforms also came under scrutiny from Atiku, who described aspects of the policy as punitive.

Onanuga countered that the reforms were designed to widen the tax base while shielding lower-income earners and smaller businesses from disproportionate burdens.

“The objective of the tax reforms is not merely to increase collections but to create a broader, more equitable tax system,” he said.

Beyond fiscal policy, Onanuga highlighted the government’s social investment programmes and public-sector interventions as evidence that the reforms were being accompanied by efforts to strengthen essential services.

He said more than 3,000 primary healthcare centres had been revitalised, over 78,000 frontline health workers retrained and three cancer treatment centres established.

In education, the presidential aide said more than 1.64 million students had benefited from the Nigerian Education Loan Fund, with over ₦303bn disbursed to support access to tertiary education.

One of the strongest points of disagreement centred on Atiku’s claim that the Federal Government had failed to account for an alleged ₦7.98tn oil revenue windfall.

Onanuga rejected the claim outright and challenged the former vice president to provide evidence supporting the figure.

“There is no such windfall of N7.98 trillion,” Onanuga said. “Atiku will do well to show the workings for his N7.98 trillion oil windfall.”

The exchange reflects the increasingly charged economic debate ahead of Nigeria’s 2027 general election, with the Tinubu administration seeking to present its policies as necessary structural corrections while opposition figures continue to focus on the immediate impact of inflation, reduced purchasing power and the rising cost of living.

The removal of the petrol subsidy and the unification of foreign exchange markets have remained among the most consequential decisions of the administration.

While the government has argued that both policies were unavoidable to restore fiscal stability, critics have maintained that the burden of adjustment has fallen disproportionately on ordinary Nigerians.

Onanuga acknowledged that the reforms had brought short-term hardship but argued that the pain should be viewed against the long-term objective of correcting what the administration considers deep-rooted distortions in the economy.

“Nigeria’s economy is not yet where it aspires to be. But neither is it where it stood at the height of its structural distortions,” he said.

“The fundamental reforms will continue to expand opportunity, strengthen institutions, and deliver tangible improvements in the lives of Nigerians.”

The Presidency’s response sets the stage for a potentially fierce economic debate as political parties and presidential contenders prepare for the 2027 election.

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At the heart of that debate will be whether the government’s difficult reforms can translate into sustained improvements in living standards, or whether Nigerians will continue to bear the weight of policies whose promised benefits remain a matter of political contention.