Emir Sanusi II Questions Nigeria's Borrowing After Subsidy Removal

The Emir of Kano, Muhammadu Sanusi II, criticized Nigeria's federal government on Friday for its persistent borrowing even after the removal of the petrol subsidy, questioning the allocation of freed-up funds amid rising debt levels.

In an interview aired by News Central TV, the former Central Bank of Nigeria governor acknowledged the necessity of ending the subsidy regime and liberalizing the exchange rate but warned that poor timing and inadequate fiscal discipline could undermine these reforms. Sanusi highlighted Nigeria's past reliance on foreign refineries despite being an oil-producing nation, describing it as a systemic failure. "I have always said 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 doing our own," he said.

Sanusi expressed optimism about recent progress in domestic refining capacity, noting that the country has transitioned from importing petroleum products to exporting them, including to Europe. "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...