The Emir of Kano, Muhammadu Sanusi II, has cautioned the Federal Government over its continued reliance on borrowing, warning that weak fiscal discipline could undermine gains from recent economic reforms, including the removal of petrol subsidy.
Speaking in an interview on News Central TV on Friday, monitored by The News Chronicle, the former Central Bank of Nigeria (CBN) governor said key reforms, though necessary, risk being weakened by poor sequencing and lack of discipline.
Sanusi, a long-time critic of the fuel subsidy regime, restated that it was unsustainable, faulting Nigeria’s historic dependence on foreign refineries while domestic facilities remained underutilised.
“We cannot continue supporting foreign refineries as an oil-producing country while our own refineries are not functioning,” he said.
He, however, acknowledged improvements in the downstream sector, noting increased domestic refining capacity and reduced reliance on imports.
“Today, we have our own domestic refinery. We are no longer importing petroleum products; we are even exporting to Europe. That is positive for the economy,” he added.
While supporting subsidy removal and foreign exchange liberalisation in principle, Sanusi questioned their timing and execution, arguing that implementing them without tightening monetary conditions worsened the naira’s depreciation.
“Artificial exchange rates, especially when you’re printing money, cannot work. There was going to be a devaluation,” he said.
He stressed that although subsidy removal was unavoidable, it should have been matched with stronger fiscal restraint.
“It’s not enough to say they removed subsidy. You had to. When 100% of your revenue goes into debt service, you cannot continue,” he said.
Sanusi warned that continued borrowing, despite subsidy savings, raises concerns about government priorities and fiscal consolidation.
“We’ve removed the subsidy. What we should not see is fiscal consolidation being ignored while borrowing continues. If you’re not paying subsidy and you’ve got the money, why are we still borrowing?” he asked.
His remarks come amid controversy over President Bola Ahmed Tinubu’s request for Senate approval of a $516.3 million loan to fund sections of the proposed Sokoto–Badagry Superhighway.
In a letter to Senate President Godswill Akpabio, the President said the 1,000-kilometre project is designed to link the North-West and South-West regions.
The borrowing plan has drawn criticism from several quarters, including former Vice-President Atiku Abubakar, who described the project as commendable but urged the government to explore alternative funding options rather than further increasing the country’s debt burden.
