Former Central Bank of Nigeria Governor and Emir of Kano, Muhammadu Sanusi II, has raised concerns over Nigeria’s continued reliance on borrowing even after the removal of fuel subsidy.
Speaking in a recent interview, Sanusi noted that the subsidy removal was expected to ease pressure on government finances and significantly reduce the need for external and domestic loans. However, he observed that the country’s debt levels have continued to rise despite the policy change.
He explained that one of the main justifications for removing fuel subsidies was to free up public funds for infrastructure and development. According to him, this should have helped reduce fiscal deficits and limit new borrowing.
Sanusi questioned the consistency of the government’s fiscal approach, asking why borrowing remains high when subsidy payments have already been eliminated. He stressed that such economic reforms must be supported by strong financial discipline and effective spending management to achieve meaningful results.
He also warned that borrowing is only beneficial when directed toward productive investments that generate economic growth, adding that transparency in the use of borrowed funds is essential for public trust and accountability.
In summary, Sanusi’s remarks highlight concerns that despite major economic reforms, Nigeria’s debt situation continues to grow, raising questions about government spending priorities and fiscal strategy.
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