The Emir of Kano, Muhammadu Sanusi II, has raised concerns over the Federal Government’s continued borrowing despite the removal of fuel subsidy and the floating of the naira.
The government has consistently defended both policies, arguing that they have boosted revenue and reduced fiscal leakages.
However, it has continued to pursue external and domestic loans, including a recent request for $516 million to fund the Sokoto–Badagry Superhighway project.
Some analysts and critics have also noted that the expected benefits of the reforms are yet to be fully felt by citizens.
Speaking in a video shared by News Central TV on Friday, Mr Sanusi, a former governor of the Central Bank of Nigeria, acknowledged that removing fuel subsidy and liberalising the exchange rate were necessary reforms.
However, he warned that poor timing and weak fiscal discipline could undermine their intended gains.
“I have always said the subsidy regime was unsustainable. We cannot continue supporting foreign refineries while neglecting our own,” he said.
Mr Sanusi expressed optimism about Nigeria’s shift towards domestic refining, noting that the country is beginning to reduce reliance on imports and expand exports of petroleum products.
He also defended exchange rate liberalisation, describing artificial exchange rates as unsustainable, particularly in an environment of excessive money supply.
“For me, removing subsidy or liberalising exchange rates are good interventions. But were they done at the right time? Were complementary measures put in place? Those are critical questions,” he added.
According to him, implementing exchange rate reforms without tightening monetary conditions contributed to the naira’s sharp depreciation.
“If you liberalise in a loose monetary environment without controlling money supply, the naira will continue to weaken. That was a timing issue,” he said.
Mr Sanusi further questioned the rationale behind continued borrowing after the removal of subsidy payments, arguing that the government should be demonstrating fiscal consolidation.
“If you’re no longer paying subsidy and revenues have improved, why are we still borrowing? What exactly are we borrowing for?” he asked.
He stressed that Nigerians should begin to see tangible benefits from the reforms, warning that failure to translate policy changes into improved economic outcomes could erode public confidence.
🚨 BREAKING: Watch the full clip here ➤
