The Emir of Kano, Muhammadu Sanusi II, has raised concerns over Nigeria’s continued borrowing even after the removal of petrol subsidies, warning that weak fiscal discipline could undermine recent economic reforms.
Speaking on News Central TV on Friday, the former Central Bank governor stressed that the government must show tangible benefits from the difficult measures it has implemented. A consistent critic of the subsidy system, Sanusi argued it was unsustainable, noting the irony of an oil-producing nation relying on foreign refineries while domestic ones remained inactive.
He acknowledged signs of progress, pointing out that Nigeria is gradually moving toward local refining and even exporting petroleum products, which he described as encouraging.
However, Sanusi questioned the timing and coordination of key reforms, particularly the simultaneous removal of fuel subsidies and the liberalisation of the foreign exchange market. He explained that implementing both policies without tightening monetary conditions contributed to the naira’s sharp decline.
While maintaining that the reforms were necessary, he emphasized that their execution matters. Sanusi also challenged the government to account for savings from subsidy removal, asking why borrowing continues if those funds are no longer being spent.
His comments come as President Bola Ahmed Tinubu seeks Senate approval for a $516.3 million loan for the Sokoto–Badagry Superhighway project, a move that has sparked debate among critics who are calling for alternative funding options to avoid increasing the nation’s debt.
