The Emir of Kano, Muhammad Sanusi II, has raised fresh concerns over Nigeria’s rising debt profile, questioning why the Federal Government continues to borrow heavily despite the removal of petrol subsidy, a reform expected to free up significant public funds.
Speaking in an interview with News Central TV on Friday, the former Central Bank governor said while he supports key economic reforms introduced by the government, serious questions remain about implementation, timing and fiscal discipline.
Sanusi described the removal of fuel subsidy as necessary and long overdue, arguing that the old system was unsustainable, especially for an oil-producing country like Nigeria.
“I have always said the subsidy regime was unsustainable. We cannot continue supporting foreign refineries. We’re an oil producing country,” he said.
According to him, Nigeria’s previous dependence on imported petroleum products while local refining capacity remained idle exposed major policy gaps. He noted that circumstances have now changed with domestic refining improving, saying the country is no longer in the same position it once was.
“Today, we have a situation where we have our own domestic refinery. We’re not importing petroleum products. We’re even exporting to Europe,” he added.
While backing subsidy removal and exchange rate liberalisation as necessary reforms, Sanusi questioned how the policies were rolled out, particularly warning that foreign exchange liberalisation without tighter monetary controls contributed to pressure on the naira.
“It’s not enough to say, oh, they removed subsidy. You had to. However, timing was an issue,” he said.
His strongest criticism, however, centered on government borrowing. Sanusi questioned why the country’s debt burden is still expanding despite claims that subsidy removal would create fiscal savings.
“We’ve removed the subsidy. If you’re not paying the subsidy and you’ve got the money, why are we still borrowing?” he asked.
He argued that if subsidy savings are real, they should be reflected in lower borrowing needs and improved fiscal management, rather than continued reliance on debt.
His remarks come as concerns grow over Nigeria’s rising borrowing plans. Earlier this month, the Federal Government increased its 2026 borrowing projection by N11.31 trillion, pushing the figure to N29.20 trillion. President Bola Tinubu also sought Senate approval for a 516 million dollar loan for the Sokoto Badagry Superhighway, adding to debates over debt sustainability.
Sanusi’s comments have further fueled conversations around whether the economic reforms, though widely seen as necessary, are translating into the fiscal relief many Nigerians were promised.
