Former Sanusi Lamido Sanusi has raised fresh concerns over Nigeria’s economic direction, questioning why government borrowing persists despite the removal of fuel subsidies and recent foreign exchange reforms.
Sanusi acknowledged that key reforms were necessary but stressed that how they are implemented is just as important. “I have always said the subsidy regime was unsustainable,” he stated.
He criticised past practices around fuel dependency, adding, “We cannot continue supporting foreign refineries when we’re an oil-producing country.”
Highlighting recent progress in the sector, he noted, “Today, we have our own domestic refinery. We’re not importing petroleum products. We’re even exporting fuel, and this is very good for the economy.”
Despite these improvements, he warned that policy missteps could weaken the gains. “Artificial exchange rates, especially when you’re printing money, cannot work—there was going to be a devaluation,” he said.
Sanusi then questioned the government’s current borrowing trend, asking pointedly, “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?”
Calling for stricter financial management, he stressed, “We should now see fiscal consolidation. You cannot remove wastages and continue borrowing at a higher rate.”
He concluded with a caution on policy coordination, warning, “The naira drops to a bottomless pit—there is a timing issue.”
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