Muhammadu Sanusi II don question why Federal Government still dey borrow after subsidy removal, raising fresh concerns over Nigeria rising debt profile.
Speaking during interview, the former Central Bank of Nigeria governor say even though reforms like subsidy removal and exchange rate liberalisation good, poor timing and weak fiscal discipline fit reduce their benefits.
Concern over rising debt
Sanusi argue say if government don remove fuel subsidy, the savings suppose reduce borrowing, not increase am.
He question: “If we no dey pay subsidy again and money dey, why we still dey borrow?”
Criticise dependence on foreign refining
The Emir also fault Nigeria long dependence on foreign refineries, saying e no make sense for oil-producing country.
However, he praise recent progress in local refining, noting say Nigeria don move from importing fuel to even exporting to Europe.
Policy timing issues
Sanusi explain say reforms like exchange rate liberalisation necessary, but say implementation timing matter.
According to am, carrying out such policies under loose monetary conditions contribute to sharp fall of naira.
He warn say without proper coordination, reforms fit create more economic problems.
Fresh borrowing concerns
His comments come as Federal Government reportedly increase borrowing plan for 2026 to over ₦29tn.
Also, Bola Tinubu recently request Senate approval for fresh $516 million loan for infrastructure project.
Call for fiscal discipline
Sanusi stress say government must show clear benefits of reforms to Nigerians and ensure proper use of public funds.
He conclude say removing waste without reducing borrowing no go solve Nigeria financial challenges.
