Emir of Kano Muhammad Sanusi II has questioned the Federal Government’s continued borrowing despite the removal of petrol subsidy.
He spoke in an interview with News Central TV on Friday.
Emir Sanusi said the removal of fuel subsidy and the liberalisation of the exchange rate were necessary, but raised concerns about timing and fiscal management.
He said Nigeria’s past practice of supporting foreign refineries while local refining capacity remained inactive was a policy gap.
“I have always said the subsidy regime was unsustainable. We cannot continue supporting foreign refineries. We’re an oil-producing country,” he said.
Sanusi said the situation has changed with domestic refining, adding that Nigeria now produces and exports petroleum products.
“Today, we have a situation where we have our own domestic refinery. We’re not importing petroleum products. We’re even exporting to Europe,” he said.
He said the policy reforms were correct but questioned how they were implemented.
He said exchange rate liberalisation without tight monetary conditions contributed to currency pressure.
“It’s not enough to say, oh, they removed subsidy. You had to. However, timing was an issue,” he said.
Sanusi also said government borrowing remains high despite the end of subsidy payments.
“We’ve removed the subsidy. If you’re not paying the subsidy and you’ve got the money, why are we still borrowing?” he said.
He added that fiscal savings should reflect in reduced borrowing.
Earlier this month, the Federal Government raised its 2026 borrowing plan by N11.31 trillion to N29.20 trillion.
President Bola Tinubu also requested Senate approval for a $516 million loan for the Sokoto-Badagry Superhighway.
