The Emir of Kano, Muhammadu Sanusi II has questioned why Nigeria is still borrowing heavily despite scrapping the petrol subsidy, warning that poor fiscal discipline could erase the gains of recent reforms.
Speaking on News Central TV on Friday, the former Central Bank governor said the government needs to show clear results from the tough economic decisions it has taken.
Sanusi, a long-time critic of the subsidy regime, maintained that it was unsustainable, pointing out that it made little sense for an oil-producing country to depend on foreign refineries while local ones remained idle.
“We cannot keep supporting foreign refineries when our own are not working,” he said.
He acknowledged that things are beginning to shift, noting that Nigeria is gradually moving towards local refining and even exporting petroleum products a development he described as a positive step.
Still, he raised concerns about how and when some of the reforms were implemented, particularly the removal of subsidy and the liberalisation of the foreign exchange market.
According to him, introducing both policies in a loose monetary environment contributed to the sharp fall of the naira.
“These reforms are necessary,” he said, “but the timing matters. If you remove subsidy and liberalise the exchange rate without tightening money supply, the currency will come under serious pressure.”
Sanusi argued that while ending the subsidy was unavoidable especially with revenues previously tied up in debt servicing the government must now demonstrate fiscal discipline.
“We’ve removed the subsidy, so where is the money going?” he asked. “If we’re no longer spending on subsidy, why are we still borrowing?”
His remarks come as Bola Ahmed Tinubu seeks Senate approval for a $516.3 million loan to fund sections of the Sokoto–Badagry Superhighway, a project aimed at linking the North-West and South-West regions.
The proposed borrowing has sparked debate, with critics, including Atiku Abubakar, urging the government to consider alternative funding options rather than adding to the country’s debt burden.
