Like Atiku, Sanusi criticises Tinubu’s loan plan, says “you can’t end subsidy and still borrow”

Muhammadu Sanusi II, former Central Bank governor and current Emir of Kano State, has stirred national debate about Nigeria’s fuel subsidy reform and forex policy change, demanding better fiscal management and coordination among government policies.

Addressing the public in a viral video clip, Sanusi explained how the subsidy system had become impracticable and that it was irrational economically for Nigeria to keep importing refined petroleum products considering its position as a major exporter of crude oil.

Sanusi stressed that policy sequencing should be prioritized during such policies and that reforms should be executed in ways that would not affect the economy’s stability or citizens’ lives unnecessarily.

“We can no longer sustain the subsidy for foreign refineries. We are an oil-producing nation,” he said.

He highlighted how recent trends have shown a significant improvement to the Nigerian economy

He also talked about reforms to the exchange rates system, where he cautioned against any form of artificial controls that did not take into account the realities of the markets.

According to him, “Artificial exchange rates, when you are printing money, will not work. Devaluation is therefore inevitable.” Though he supported the two policies mentioned above, Sanusi cautioned on the importance of timing and sequencing.

“The removal of subsidy, or the liberalization of foreign exchange rates – these are good policies. But would they be done at the proper time? These are questions for sure,” he noted.

In addition, Sanusi highlighted the issue of high government debt servicing costs as another reason for policy reform as government finances had been stretched beyond their limit even prior to implementation.

However, he noted that any policy reform not paired with strict controls could lead to the instability of the Nigerian currency and cause economic problems.

“You need to control money supply before the naira sinks into a bottomless pit,” he said, citing timing as one of the most significant policy weaknesses.

In addition, he expressed concerns regarding the government’s borrowing practices despite the reduction in government expenses after subsidies were removed.

“You cannot get rid of wastage and continue borrowing,” he cautioned.

All these remarks have contributed to the current discussion on the economic reforms in Nigeria under President Bola Tinubu.

Central Post Nigeria reports that, the former vice president of Nigeria, Atiku Abubakar, has shown great fear concerning the move by Bola Ahmed Tinubu seeking an approval from the Senate for another external loan amounting to $516 million for constructing sections of the Sokoto-Badagry Superhighway project.

According to Atiku, who through his Senior Special Assistant on Public Communication, Phrank Shaibu made the statement, developing infrastructure, especially when it aims at linking the North-West with the South-West, is highly required.

“Indeed, no region of Nigeria should be left behind in the march toward national integration and economic expansion. However, noble intentions cannot excuse reckless fiscal choices.

“At a time when Nigeria is already groaning under the weight of unsustainable debt, the resort to yet another foreign loan—without transparent terms, clear cost-benefit analysis, and a credible repayment framework—raises profound questions about prudence and accountability,” Atiku stated.