Sanusi questions Nigerian Govt’s continued reliance on borrowing
Emir of Kano Questions Nigeria’s Fiscal Policies Amid Subsidy Removal
The Emir of Kano, Lamido Sanusi, has raised concerns regarding the Nigerian government’s ongoing reliance on borrowing following the removal of the petrol subsidy. His comments were made during an interview posted by News Central TV on Friday.
Sanusi, a former governor of the Central Bank of Nigeria, acknowledged that while the elimination of the fuel subsidy and the liberalization of the exchange rate were essential measures, the lack of fiscal discipline could undermine their potential benefits.
He criticized the government’s approach to supporting foreign refineries while Nigeria’s own refining capabilities remain inactive. “I have always stated that 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 operating our own is a systemic failure,” Sanusi said.
Despite his concerns, Sanusi expressed optimism about Nigeria’s transition towards domestic production. He noted that the country has shifted from being a heavy importer of petroleum products to an exporter. “Today, 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 stated.
While supporting the government’s policy changes, the former apex bank governor emphasized the importance of proper timing and sequencing in implementing these reforms.
