The Emir of Kano, Muhammadu Sanusi II, has raised concerns over Nigeria’s rising debt profile, questioning why the Federal Government continues to borrow heavily despite the removal of petrol subsidy.
Speaking in an interview with News Central TV, the former Governor of the Central Bank of Nigeria said while key reforms such as subsidy removal and exchange rate liberalisation were necessary, poor sequencing and weak fiscal discipline could undermine their benefits.
Sanusi criticised Nigeria’s longstanding dependence on foreign refining, describing it as a structural weakness that persisted for years despite the country’s status as an oil producer.
He, however, welcomed recent progress in domestic refining, noting that Nigeria is gradually shifting from heavy reliance on imported petroleum products to exporting refined products—an outcome he described as positive for the economy.
Despite supporting the reforms in principle, Sanusi questioned whether they were implemented at the appropriate time and in the right policy sequence.
He argued that exchange rate liberalisation introduced in a loose monetary environment contributed to the sharp depreciation of the naira, stressing that tightening money supply should have preceded such reforms.
Sanusi also noted that subsidy removal became unavoidable at a point when government revenue was largely consumed by debt servicing, warning that fiscal adjustments must translate into visible improvements in public finances.
His comments followed reports that the Federal Government increased its 2026 borrowing plan by ₦11.31 trillion, bringing total projected borrowing to ₦29.20 trillion.
He further referenced a recent request by President Bola Tinubu to the Senate for approval of a $516 million loan to finance the Sokoto–Badagry Superhighway.
Sanusi questioned the rationale behind continued borrowing after subsidy removal, insisting that savings from the reform should support fiscal consolidation rather than expanding debt obligations.
He maintained that Nigerians should begin to see clearer benefits from the reforms, particularly in improved public finances and reduced reliance on borrowing.
