FORMER Governor of the Central Bank of Nigeria (CBN) and the 16th Emir of Kano, Muhammadu Sanusi II, has warned the Federal Government that continued borrowing despite removing petrol subsidy risks undermining the entire economic reform agenda of President Bola Ahmed Tinubu.
News Point Nigeria reports that Sanusi spoke on Tuesday in Abuja at the Oxford Global Think Tank Leadership Conference and a book launch, where he reviewed Nigeria’s economic trajectory and ongoing policy changes.
While applauding the Tinubu administration for removing subsidy and unifying the exchange rate, reforms he described as “painful but necessary”, Sanusi insisted that such bold moves must be backed by strict fiscal discipline and transparent spending.
“If you stop paying subsidies but continue borrowing more, it means you’ve filled one hole only to dig another,” he said.
“The real challenge is how the money saved is being spent.”
“We warned against subsidy politics years ago”
Sanusi blamed Nigeria’s current economic woes on years of populist decision-making and excessive government spending. He recalled warnings given in 2012 when the Goodluck Jonathan administration attempted subsidy removal but backed down due to nationwide protests and the Boko Haram insurgency.
“We were inches away from hyperinflation. If subsidy had been removed in 2011, inflation would have gone from 11% to 13% and returned within a year. Today, we are battling 30% inflation due to delayed action.”
He revealed that many who protested subsidy removal then acknowledged privately that the government was right but acted politically.
The former CBN boss criticized the culture of sycophancy within government circles, warning that leaders who are shielded from truth are doomed to fail.
“We have too many praise-singers in government. Those who tell the President what he needs to hear are branded enemies.”
He argued that governance must prioritize institutions, transparency, and spending efficiency instead of political patronage.
“Why do we need 48 ministers? Why convoys of vehicles? Why keep borrowing after removing subsidies? If you fill one hole and dig another, you end up in the same pit.”
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, defended the administration’s approach, insisting that reforms are already yielding positive outcomes. He said government revenue has grown and debt-service-to-revenue ratio has dropped from over 100% to about 40%.
Edun also highlighted a digital cash-transfer programme targeting 15 million vulnerable households.
“Each beneficiary is identified by name and NIN. Payments are tracked in real time to ensure transparency,” he said.
He further revealed plans for ward-based development programmes to empower micro-entrepreneurs and reduce poverty at grassroots level.
Sanusi praised the current CBN leadership for halting Nigeria’s slide toward hyperinflation.
“Yes, the naira is at ₦1,400, but stability is key. Better ₦1,400 for six months than ₦2,000 tomorrow. The Central Bank’s job is to reduce volatility, not necessarily strengthen the naira.”
The former CBN chief reiterated that long-term economic gains depend on controlling spending and prioritizing investments that improve citizens’ welfare.