Sanusi Questions FG’s Rising Borrowing After Subsidy Removal, Demands Fiscal Discipline

The Emir of Kano, Muhammadu Sanusi II, has warned Nigeria over its fiscal direction, cautioning that continued borrowing after fuel subsidy removal could undermine economic reforms. Speaking at TheNiche’s 5th annual lecture in Lagos, Sanusi questioned why fiscal space freed by subsidy removal has not translated into reduced borrowing or visible improvements in public welfare. He said, ‘We’ve removed the subsidy. We’re not spending it. What we should not see is fiscal contradictions. You cannot remove the subsidy and continue borrowing.’ Sanusi also criticised President Bola Ahmed Tinubu’s $516 million loan request for the Sokoto–Badagry Superhighway, arguing that reforms must deliver measurable outcomes for citizens. He highlighted past distortions from fuel subsidies and artificial exchange rates, stressing that monetary tightening should precede policy liberalisation. Sanusi warned that 100% revenue-to-debt service is unsustainable, noting Nigeria’s reliance on foreign refineries despite domestic refining progress. Former Vice-President Atiku Abubakar criticised the highway project’s funding approach. Abia State Governor Alex Otti linked Nigeria’s economic hardship to decades of poor leadership and low voter turnout, urging active civic participation to reverse institutional decay. He warned that governance failures have led to poverty, unemployment, and economic stagnation, emphasizing the need for disciplined reforms and long-term economic vision.