According to a report by The Punch on Friday, April 24, 2026, The Emir of Kano, Muhammadu Sanusi II, has expressed concern over Nigeria’s ongoing reliance on borrowing despite the removal of petrol subsidy, warning that the country’s fiscal approach may undermine the gains expected from recent economic reforms.
Sanusi made the remarks during an interview shared by News Central TV, where he reviewed key policy changes introduced in Nigeria’s economic management, particularly in the areas of fuel subsidy removal and foreign exchange reforms.
He acknowledged that the decision to remove fuel subsidy, along with the shift toward a more market-driven exchange rate system, were necessary steps aimed at correcting deep-rooted distortions in the economy. According to him, these reforms were long overdue and designed to improve efficiency in public finance and reduce wasteful spending.
However, he cautioned that the impact of these measures could be weakened by poor timing and weak fiscal discipline. He explained that without strict control of government spending, the expected benefits of the reforms may not fully materialize, potentially placing further strain on the economy.
The former Central Bank of Nigeria governor also pointed to long-standing inefficiencies in the petroleum sector. He noted that Nigeria had, for many years, spent huge amounts importing refined petroleum products while domestic refineries remained largely non-functional. He described this as a structural imbalance that drained national resources and strengthened foreign refining systems at the expense of local capacity.
Despite these challenges, Sanusi expressed optimism about recent developments, noting that Nigeria is gradually transitioning from being a net importer of petroleum products to an exporter. He said this shift reflects improvements in domestic production and a slow move toward energy self-sufficiency.
He also raised concerns about the sequencing of economic reforms, arguing that while the policy direction may be correct, the order of implementation is equally important. He stressed that coordination between fiscal and monetary authorities is necessary to ensure stability and effectiveness.
According to him, the liberalisation of the exchange rate, when combined with insufficient monetary tightening, contributed to increased pressure on the currency and heightened volatility in the foreign exchange market.
Sanusi concluded by warning against continued borrowing after removing subsidy, stating: “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.”
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