The Emir of Kano and former Central Bank governor, Muhammadu Sanusi Lamido Sanusi II, has raised fresh concerns over Nigeria’s continued reliance on borrowing despite the removal of fuel subsidies.
Speaking at a public event, Sanusi questioned the logic behind the country’s fiscal direction, noting that the elimination of subsidy payments should have eased financial pressure.
Referring to the development in remarks shared via News Central’s official X account, he asked why borrowing persists if funds previously spent on subsidies are now available.
“If you’re not paying the subsidy and you’ve got the money, why are we still borrowing,” Sanusi said.
According to him, Nigerians deserve to see stronger public finances and clear economic improvements following what he described as a difficult but necessary policy shift.
Sanusi has long criticised the petrol subsidy regime, consistently arguing that it was unsustainable. He previously described it as an “open-ended hedge” rather than meaningful social support, warning that it trapped the government in a cycle of debt accumulation.
In his view, authorities were not only borrowing to finance subsidies but also taking on additional debt to service interest payments, a pattern he once labelled “bankruptcy by policy.” He added that delaying its removal worsened inflationary pressures and weakened fiscal stability.
The administration of Bola Ahmed Tinubu scrapped the subsidy in May 2023 as part of wider economic reforms, including the unification of exchange rates.
While supporters believed the move would free up funds for infrastructure, social programmes, and debt reduction, the anticipated benefits have been constrained by challenges such as currency depreciation, rising inflation, and increasing public debt.
Although Sanusi supports the reforms, calling them necessary, he warned that continued borrowing could undermine their gains. He stressed that savings from subsidy removal should lead to visible improvements in public services and overall economic stability, rather than deeper indebtedness.
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