The Emir of Kano, Muhammadu Sanusi II, has questioned why Nigeria continues to borrow heavily despite the removal of fuel subsidy, raising concerns over the country’s fiscal direction.
Sanusi made this known on Friday during an interview aired on News Central TV, where he assessed Nigeria’s economic reforms and fiscal policies.
While the former Governor of the Central Bank of Nigeria maintained that the subsidy regime was unsustainable, he questioned whether the timing of its removal was appropriate and whether supporting measures were in place before the policy was implemented.
Sanusi criticised Nigeria’s past reliance on foreign refineries despite being an oil-producing nation, describing it as an unsustainable approach to energy management.
He pointed to improvements in local refining capacity, particularly the operations of the Dangote Refinery, noting that Nigeria is no longer heavily reliant on imported petroleum products, which he described as positive for the economy.
The monarch added that the impact of subsidy removal should already be evident in the economy nearly three years after the policy was introduced.
Sanusi’s comments come less than a year after he attributed Nigeria’s current economic challenges to the long delay in removing fuel subsidy.
He explained that the subsidy system effectively forced the government to absorb price shocks from global oil and exchange rate fluctuations for years.
Despite claims by the Chairman of the Senate Appropriation Committee, Solomon Adeola, that Nigeria is saving over N10 trillion annually from subsidy removal, borrowing by the administration of President Bola Tinubu has continued.
In early April, Nairametrics reported that the Federal Government increased its 2026 borrowing plan by N11.31 trillion, bringing total projected borrowing to N29.20 trillion.
A breakdown shows that Federal Government bonds accounted for about N5.35 trillion, representing roughly 65% of total domestic interest payments.