Subsidy Removal: Sanusi Picks Holes In Tinubu’s Economic Policies Amid Continued Borrowing
By Akanni Toba
Muhammadu Sanusi II, the Emir of Kano, has faulted President Bola Tinubu’s economic policies which he argued have not allievated the attendant hardship the removal of petrol subsidy foisted on Nigerians.
Sanusi noted that the continued borrowing which characterises the Tinubu administration is questionable and worrisome adding that Nigerians ought to be enjoying the benefits of the subsidy removal instead of enduring the current biting economy.
The traditional ruler made these assertions on Thursday while speaking at TheNiche 2026 annual lecture, themed ‘Governing the Economy: Choices, Trade-offs, and National Priorities’, held in Lagos.
He added that the focus should now shift to fiscal consolidation, stressing that the benefits of subsidy removal must be reflected in improved public finances.
“We’ve removed the subsidy. We are not spending it. What we should now see is fiscal consolidation. You cannot remove wastages and continue borrowing,” Sanusi said.
“You need to see the benefits. If you are not paying the subsidy and you’ve got the money, why are we still borrowing and borrowing? What are we borrowing for?”
Sanusi, however, stated that the policies, particularly subsidy removal and foreign exchange (FX) liberalisation, are not impracticable in themselves the ex-CBN governor said both measures were necessary, while raising concerns about the timing.
“Removing subsidy or liberalised exchange rates, these are good interventions,” he said.
“Now, were they done at the right time? Those are certain questions. Were there other things that should be done that have not been done? These are other issues. I think we must make that decision.”
Speaking further on the implementation of the current administration’s key reforms, Sanusi noted that embarking on the two policies without first tightening the money supply worsened pressure on the naira.
“It is not enough to say, oh, they removed subsidy. You had to. When you get to a point where 100 percent of your revenue goes into debt service, you cannot continue. Where is the money going to come from?” he said.
“However, if you decide to remove subsidy and liberalise exchange rate in an environment of very loose monetary conditions, before you have tightened money supply, then [the] naira drops to a bottomless pit. So, that was a timing issue.”
Sanusi’s criticisms were prompted by the continued borrowings which have come to define the Tinubu administration.
On Thursday, Tinubu forwarded a $516 million borrowing request to the national assembly for the construction of sections of the Sokoto-Badagry superhighway project.
This is the latest in the administration’s borrowing sprees.
Prior to Thursday’s request, a month ago, the national assembly approved Tinubu’s $6 billion external borrowing request, intended to be used partly for debt settlement.
