SANUSI RAISES CONCERNS OVER NIGERIAN GOVERNMENT’S CONTINUED DEPENDENCE ON BORROWING

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By:Tajudeen Aminat

The Emir of Kano, Lamido Sanusi, has raised concerns over the Nigerian government’s continued dependence on borrowing despite the removal of the petrol subsidy.

Sanusi made the remarks while assessing the country’s current fiscal direction in an interview shared by the MEDIA on Friday.

The former Governor of the Central Bank of Nigeria said that although the removal of fuel subsidy and the liberalisation of the exchange rate were necessary reforms, poor timing and weak fiscal discipline could undermine their potential benefits.

He emphasised that Nigeria’s continued support for foreign refineries while its own refining capacity remains inactive represents a structural weakness that must be corrected.

“I have always said the subsidy regime was unsustainable. We cannot keep funding foreign refineries. We are an oil-producing nation, yet we maintain refineries abroad while neglecting our own,” Sanusi said.

The monarch, however, expressed optimism about the recent shift towards local production, noting that Nigeria has transitioned from being a major importer of petroleum products to an exporter.

“Today, we have a situation where 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 added.

The former Central Bank of Nigeria governor, while supporting the policy changes, nonetheless raised concerns about their timing and sequencing.