Former Governor of the Central Bank of Nigeria, Muhammadu Sanusi II, has openly questioned the continued rise in Nigeria’s debt profile under President Bola Ahmed Tinubu, despite the removal of fuel subsidy.
Sanusi spoke on Friday at a public event. He raised concerns over what he described as a disconnect between government policy promises and current fiscal realities.
His remarks come at a time when many Nigerians are still grappling with the economic impact of subsidy removal.
“Why are we still borrowing?” he asked. “The whole argument for removing subsidy was to free up funds for development. If we have removed it, where is the money going?”
He said the subsidy removal was presented to Nigerians as a necessary step to ease pressure on government finances.
According to him, the policy was meant to redirect funds into infrastructure, healthcare, and social services. However, he noted that rising debt figures suggest a different reality.
Sanusi stressed the need for greater transparency. He said citizens deserve clear explanations on how government revenues are being spent. He warned that without openness, public confidence in economic policies may weaken.
He also clarified that borrowing itself is not the problem. He explained that loans can be useful if tied to productive investments. But he insisted that the government must show visible outcomes from such borrowing.
According to him, Nigerians should be able to see the direct impact of loans on development projects and economic growth.
His comments add to the growing debate over Nigeria’s fiscal direction since the removal of fuel subsidy in 2023. The policy, one of the first major decisions by the Tinubu administration, led to an immediate increase in petrol prices and cost of living.
As of the time of filing this report, the Federal Government has not issued any official response to Sanusi’s remarks.
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