Muhammadu Sanusi II, the Emir of Kano, revealed that former President Goodluck Jonathan halted the 2012 fuel subsidy removal due to fears of Boko Haram attacks on protesters.
While speaking at the Oxford Global Think Tank Leadership Conference, Sanusi explained that Jonathan’s administration paused the policy after intelligence reports suggested terrorists might target demonstrators.
Sanusi, who served as Governor of the Central Bank of Nigeria (CBN) at the time, described the petrol subsidy regime as a “naked hedge,” where the federal government guaranteed a fixed pump price regardless of global crude prices, exchange rates, or interest rates.
This arrangement forced the government to borrow huge sums to fund the subsidy and pay interest on loans, leading to bankruptcy.
According to Sanusi, Nigeria’s current economic hardship could have been avoided if the Jonathan administration had implemented the policy in 2011.
He commended Jonathan’s resolve, saying: “He was determined to do it. The only reason the government compromised and did 50 percent, not 100 percent, was Boko Haram”.
Sanusi criticized the political elite, stating that many educated leaders abandon their values for self-interest.
He previously praised President Bola Tinubu’s removal of petrol subsidy, saying it saved Nigeria from bankruptcy.