The 16th Emir of Kano, Muhammadu Sanusi II, has challenged the Federal Government to explain its continued reliance on heavy borrowing following the removal of the petrol subsidy. He warned that the benefits of recent economic reforms could be lost if the government does not practice strict fiscal discipline.
Leadership NG reported on Friday, April 24, 2026, that the former Governor of the Central Bank of Nigeria questioned the logic of seeking fresh loans when the state should have more funds available. He noted that the government must account for the money saved from no longer paying for expensive fuel imports.
“If you’re not paying the subsidy and you’ve got the money, why are we still borrowing and borrowing? What are we borrowing for?” the monarch asked during an interview. He insisted that the government must focus on fiscal consolidation and stop the trend of spending beyond its means.
Sanusi argued that while the removal of the subsidy and the liberalization of the foreign exchange market were necessary, the timing was problematic. He explained that these moves occurred in a loose monetary environment, which caused the naira to lose significant value.
The Emir suggested that the government should have tightened the money supply before floating the naira to prevent the currency from dropping into what he described as a “bottomless pit.” He noted that printing money while trying to maintain artificial exchange rates was never going to work.
Despite these concerns, the monarch expressed optimism regarding Nigeria’s shift toward domestic refining. He noted that the country has transitioned from being a major importer of petroleum products to an exporter, which he described as a positive development for the economy.
“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 said.
These warnings come as reports indicate the Federal Government has increased its 2026 borrowing plan by ₦11.31 trillion. This increase brings the total projected debt for the year to ₦29.20 trillion.
Furthermore, President Bola Tinubu recently sought the approval of the Senate for a new $516 million loan. The presidency stated that these funds are intended to finance the construction of the Sokoto–Badagry Superhighway project……See More
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