‘Why are we still borrowing?’, Sanusi questions FG’s debt rise despite subsidy removal

In an assessment of Nigeria’s current fiscal trajectory, the Emir of Kano, Muhammadu Sanusi II, has questioned the presidency’s continued reliance on borrowing despite the removal of the petrol subsidy.

Speaking in an interview posted by News Central TV on Friday, the former Governor of the Central Bank of Nigeria, affirmed that while the removal of fuel subsidy and the liberalisation of the exchange rate were necessary, the timing and lack of fiscal discipline are threatening to erase the potential benefits.

in the words of the monarch, Nigeria’s practice of supporting foreign refineries while its domestic refining capacity remained dormant was a systemic failure that needed to be addressed.

“I have always pointed out the subsidy regime was unsustainable. We cannot continue supporting foreign refineries. We’re an oil-producing country. Keeping refineries open abroad while we’re not doing our own,” Sanusi remarked.

He, in a related development, expressed optimism over the current shift toward domestic production, noting that the country has moved from a heavy importer of petroleum products to an exporter.

“Today, we have a situation where we have our own domestic refinery. We’re not importing petroleum products. We’re even exporting to Europe, and this is very good for the economy,” he added.

While backing the policy shifts, the former apex bank chief raised concerns over the timing and the sequence of the reforms.

He mentioned, “Artificial exchange rates, especially when you’re printing money, cannot work. There was going to be a devaluation.

“For 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.”

He argued that liberalising the exchange rate in a “loose monetary environment” contributed to the currency’s rapid depreciation.

“It’s 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?

“on the other hand, 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.”

Sanusi went further to challenge the presidency’s continued borrowing despite eliminating subsidy payments.

“We’ve removed the subsidy. We’re now spending it. What we should not see is fiscal consolidation. You cannot remove wastages and continue borrowing. I’ve affirmed this before. You need to see the benefits.

“If you’re not paying the subsidy and you’ve got the money, why are we still borrowing and borrowing? What are we borrowing for?” Sanusi questioned.

President Bola Tinubu also sought the Senate’s approval on Thursday for a fresh $516 million loan to fund the Sokoto-Badagry Superhighway.

Watch video below:

𝐕𝐈𝐃𝐄𝐎: ‘𝐖𝐡𝐲 𝐀𝐫𝐞 𝐖𝐞 𝐒𝐭𝐢𝐥𝐥 𝐁𝐨𝐫𝐫𝐨𝐰𝐢𝐧𝐠?’, 𝐒𝐚𝐧𝐮𝐬𝐢 𝐐𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬 𝐅𝐆’𝐬 𝐃𝐞𝐛𝐭 𝐑𝐢𝐬𝐞 𝐃𝐞𝐬𝐩𝐢𝐭𝐞 𝐒𝐮𝐛𝐬𝐢𝐝𝐲 𝐑𝐞𝐦𝐨𝐯𝐚𝐥

“We’ve removed the subsidy. We’re now spending it. What we should not see is fiscal consolidation. You cannot… pic.twitter.com/tjQCykCdkS

—  (@MobilePunch) April 24, 2026

Deborah, with nearly two years of media experience, reports human interest stories with a foundation in metro reporting.