Emir Sanusi Questions Nigeria’s Borrowing After Subsidy Removal

(AFRICAN EXAMINER) — Muhammadu Sanusi II, the Emir of Kano, has criticised Nigeria’s continued borrowing despite the removal of petrol subsidy.

Sanusi spoke on Thursday at the TheNiche 2026 Annual Lecture held in Lagos, where discussions focused on economic governance and national priorities.

His remarks come after Bola Tinubu requested a $516 million loan from the National Assembly for parts of the Sokoto–Badagry superhighway project. Earlier in March, lawmakers also approved a $6 billion external borrowing plan aimed partly at settling existing debts.

Sanusi said while removing the petrol subsidy was necessary, the government should now show clear improvements in public finances instead of increasing debt.

He noted that Nigeria has moved toward local refining, reducing reliance on fuel imports and even exporting refined products to Europe, a development he described as positive.

However, he questioned why borrowing continues despite savings from subsidy removal.

“We’ve removed the subsidy. We are not spending it. What we should now see is fiscal consolidation,” he said.
“If you are not paying the subsidy and you’ve got the money, why are we still borrowing?”

Sanusi also defended key reforms such as subsidy removal and foreign exchange liberalisation, calling them necessary but raising concerns about their timing.

According to him, implementing both policies without first tightening money supply worsened pressure on the naira.

He warned that such an approach contributed to the currency’s sharp decline.

Sanusi added that subsidy removal became unavoidable, especially as Nigeria’s debt servicing had consumed a large portion of government revenue.

In May 2023, President Tinubu announced the end of the petrol subsidy, while the Central Bank of Nigeria introduced reforms to unify the foreign exchange market.

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