According to a report by Punch Newspaper on Friday, April 24, 2026, the Emir of Kano, Muhammadu Sanusi II, has raised concerns over Nigeria’s continued dependence on borrowing even after the removal of petrol subsidy, in an assessment of the country’s fiscal direction.
Speaking during an interview shared by News Central TV, the former Central Bank of Nigeria governor reviewed recent economic reforms and their implications for public finance management.
He noted that the removal of fuel subsidy and the shift toward a more market-driven exchange rate were necessary steps intended to correct long-standing distortions in the economy.
However, he stressed that the timing of these reforms, along with weak fiscal discipline, could reduce the benefits expected from them and place pressure on overall economic stability.
He highlighted a structural issue in the petroleum sector, explaining that Nigeria had for years spent heavily on importing refined petroleum products while its local refineries remained largely inactive.
He described this situation as a systemic inefficiency that effectively directed value and investment toward foreign refining systems while domestic infrastructure was left underused, contributing to persistent imbalances in the energy supply chain.
Despite these concerns, he expressed optimism about recent changes in the sector, noting that the country has begun to shift from being predominantly an importer of petroleum products to becoming an exporter.
He pointed to the growing role of domestic production as an indication of gradual improvement in refining capacity and energy self-sufficiency.
He also raised issues regarding the sequencing of reforms, suggesting that while the direction of policy may be appropriate, the order and implementation strategy are crucial.
He maintained that without proper coordination between fiscal and monetary measures, the effectiveness of the reforms could be compromised.
He further argued that the liberalisation of the exchange rate in a relatively loose monetary environment contributed to the sharp depreciation of the currency.
According to him, insufficient monetary tightening during the transition period increased pressure on the foreign exchange market and intensified volatility in the economy.
He said, “We’ve removed the subsidy. We’re now spending it. What we should not see is fiscal consolidation. You cannot remove wastages and continue borrowing. I’ve said this before. You need to see the benefits.” Read_More…