The Emir of Kano, Lamido Sanusi, has questioned the Nigerian government’s continued reliance on borrowing despite the removal of petrol subsidy.
Sanusi assessed Nigeria’s current fiscal trajectory in an interview posted by News Central TV on Friday.
The former Central Bank of Nigeria, CBN, governor stated that while the removal of fuel subsidy and the liberalisation of the exchange rate were necessary, the timing and lack of fiscal discipline are threatening to erase the potential benefits.
He stressed that Nigeria’s practice of supporting foreign refineries while its domestic refining capacity remained dormant was a systemic failure that needed to be addressed.
“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,” Sanusi said.
The monarch, however, expressed optimism over the current shift toward domestic production, noting that the country has moved from a heavy 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 ex-apex bank governor, while backing the policy shifts, raised concerns over the timing and the sequence of the reforms.
Eze Chidiebere Paul
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