“You Cannot Remove Subsidy And Keep Borrowing” — Sanusi Calls For Fiscal Discipline

Former Central Bank Governor and Emir of Kano, Muhammadu Sanusi II, has questioned Nigeria’s continued reliance on borrowing despite the removal of fuel subsidy, warning that fiscal discipline remains critical to the success of ongoing economic reforms.

Sanusi made the remarks during a News Central TV interview aired on Friday, April 24, 2026, where he expressed concern over what he described as inconsistencies in the government’s fiscal approach following key policy changes.

He argued that savings expected from subsidy removal should have reduced the need for additional borrowing, stressing the importance of proper fiscal management and policy sequencing.

He said reforms in the petroleum and foreign exchange sectors require discipline and consistency to achieve long-term stability, warning that inconsistent implementation could worsen inflationary pressures and deepen public hardship.

According to him, continued borrowing despite subsidy removal raises concerns about how public funds are being managed and the sustainability of Nigeria’s economic direction.

Sanusi’s comments have continued to generate discussions among economists and policy observers, particularly on the effectiveness of Nigeria’s current reform agenda.