Emir of Kano, Muhammadu Sanusi II, has raised fresh concerns over the Federal Government\u2019s growing debt profile, questioning the rationale for continued borrowing despite the removal of petrol subsidy.<\/p>\n
Speaking during an interview published by News Central TV on Friday, the former Governor of the Central Bank of Nigeria said key reforms such as subsidy removal and exchange rate liberalisation were necessary, but warned that poor sequencing and weak fiscal discipline could undermine their benefits.<\/p>\n
Sanusi criticised Nigeria\u2019s longstanding dependence on foreign refining, describing it as a structural flaw that persisted while local refining capacity remained underutilised.<\/p>\n
\u201cI have always said the subsidy regime was unsustainable. We cannot continue supporting foreign refineries. We\u2019re an oil-producing country. Keeping refineries open abroad while we\u2019re not doing our own,\u201d Sanusi said.<\/p>\n
He, however, welcomed recent progress in domestic refining, noting a shift from heavy importation of petroleum products to export activity.<\/p>\n
\u201cToday, we have a situation where we have our own domestic refinery. We\u2019re not importing petroleum products. We\u2019re even exporting to Europe, and this is very good for the economy,\u201d he added.<\/p>\n
Despite supporting the reforms in principle, Sanusi questioned the timing and broader policy coordination, suggesting that critical measures may not have been implemented in the right order.<\/p>\n
He said, \u201cArtificial exchange rates, especially when you\u2019re printing money, cannot work. There was going to be a devaluation.<\/p>\n
\u201cFor me, removing subsidy or liberalising exchange rates, these are good interventions. Were they done at the right time? Those are certain questions. Were there other things that should be done that have not been done? These are other issues.\u201d<\/p>\n
The former apex bank chief argued that implementing exchange rate liberalisation in a loose monetary environment contributed to the naira\u2019s sharp depreciation.<\/p>\n
\u201cIt\u2019s not enough to say, oh, they removed subsidy. You had to. When you get to a point where 100% of your revenue goes into debt service, you cannot continue. Where is the money going to come from?<\/p>\n
\u201cHowever, if you decide to remove subsidy and liberalise exchange rates in an environment of very loose monetary conditions, before you have tightened money supply, the Naira drops to a bottomless pit. That was a timing issue.\u201d<\/p>\n
Sanusi further challenged the government\u2019s continued borrowing, insisting that savings from subsidy removal should translate into fiscal consolidation rather than increased debt.<\/p>\n
His remarks come amid reports that the Federal Government has increased its 2026 borrowing plan by \u20a611.31 trillion, pushing total projected borrowing to \u20a629.20 trillion.<\/p>\n
President Bola Tinubu also recently sought Senate approval for a fresh $516 million loan to finance the Sokoto\u2013Badagry Superhighway project.<\/p>\n
\u201cWe\u2019ve removed the subsidy. We\u2019re now spending it. What we should not see is fiscal consolidation. You cannot remove wastages and continue borrowing. I\u2019ve said this before. You need to see the benefits.<\/p>\n
\u201cIf you\u2019re not paying the subsidy and you\u2019ve got the money, why are we still borrowing and borrowing? What are we borrowing for?\u201d Sanusi questioned.<\/p>\n","protected":false},"excerpt":{"rendered":"Emir of Kano, Muhammadu Sanusi II, has raised fresh concerns over the Federal Government\u2019s growing debt profile, questioning…\n","protected":false},"author":2,"featured_media":549211,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,171090,56,54,55],"class_list":["post-549210","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-subsidy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/549210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=549210"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/549210\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/549211"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=549210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=549210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=549210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}