The Emir of Kano, Muhammadu Sanusi II, has questioned President Bola Tinubu government’s continued reliance on borrowing despite the removal of fuel subsidy, describing the situation as fiscally inconsistent.
Sanusi insisted that while the subsidy regime was unsustainable, the expected financial relief from its removal has yet to reflect in reduced borrowing.
NewsBits reports that the comments come amid a recent increase in the Federal Government’s 2026 borrowing plan by N11.31 trillion, bringing total projected borrowing to N29.20 trillion.
Recall that Tinubu also recently sought Senate approval for a fresh $516 million loan to fund the Sokoto-Badagry Superhighway” The former Central Bank governor spoke in an interview aired by News Central TV on Friday.
He noted that Nigeria could no longer justify subsidising foreign refineries as an oil-producing nation, adding that recent developments in domestic refining and exports were positive for the economy.
The monarch further criticised the government’s fiscal approach, saying the gains from subsidy removal should translate into reduced borrowing and visible economic benefits.
“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. If you’re not paying the subsidy and you’ve got the money, why are we still borrowing and borrowing? What are we borrowing for?” Sanusi asked.
