Emir of Kano Muhammadu Sanusi II has faulted the Federal Government’s appetite for debt, questioning why borrowing persists months after petrol subsidy removal and FX liberalisation.
In an interview aired Friday by News Central TV, the former CBN Governor said the two reforms were “necessary” but warned that poor timing and weak fiscal discipline risk wiping out the gains.
● “Unsustainable” Subsidy, Dormant Refineries
“I have always said the subsidy regime was unsustainable. We cannot continue supporting foreign refineries. We’re an oil-producing country. Keeping refineries open abroad while we’re not doing our own,” Sanusi said.
He called Nigeria’s decades-long dependence on fuel imports a “systemic failure” for an oil producer, and welcomed the pivot to domestic refining.
“Today, we have a situation where we have our own domestic refinery. We’re not importing petroleum products. We’re even exporting to Europe, and this is very good for the economy,” he said.
●Reforms Right, Timing Wrong*
Sanusi backed subsidy removal and exchange rate liberalisation but flagged sequence and fiscal follow-through as the problem.
With subsidy savings in hand, he argued, the case for fresh borrowing weakens. The concern: if government keeps borrowing while revenue improves, the reforms will not translate to debt relief or lower deficits.
The Emir’s comments add to a growing debate on how subsidy gains are being managed and whether the budget reflects the sacrifice Nigerians were asked to make.
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