Former Central Bank Governor and Emir of Kano, Muhammadu Sanusi II, has renewed national conversations on Nigeria’s fuel subsidy removal and foreign exchange reforms, urging stronger fiscal discipline and better policy sequencing to avoid economic instability.
Speaking in a viral video, Sanusi described the subsidy regime as unsustainable, arguing that Nigeria could not continue to support imported refined petroleum products while sitting on domestic crude resources.
“We cannot continue supporting foreign refineries. We’re an oil-producing country,” he said.
He noted that recent developments, including increased domestic refining capacity and reduced import dependence, represent a positive shift for the economy.
Sanusi also addressed exchange rate reforms, warning against artificial currency controls that fail to reflect market realities.
“Artificial exchange rates, especially when you’re printing money, cannot work,” he said, stressing that devaluation was inevitable under such conditions.
While he expressed support for both subsidy removal and exchange rate liberalisation, he cautioned that timing and sequencing remain critical to ensuring economic stability.
“For me, removing subsidy or liberalising exchange rates… these are good interventions. Were they done at the right time? Those are certain questions,” he added.
Sanusi further pointed to Nigeria’s rising debt servicing burden as a key justification for reforms, noting that government finances had become overstretched before policy changes were implemented.
He warned, however, that reforms without tight monetary controls could destabilise the naira and deepen economic hardship.
“Before you have tightened money supply, the naira drops to a bottomless pit,” he said, describing timing as a major policy flaw.
He also raised concerns about continued government borrowing despite savings from subsidy removal, urging fiscal restraint and accountability in public spending.
“You cannot remove wastages and continue borrowing,” he warned.
His comments have added fresh momentum to ongoing national debates over economic reforms, inflation, and Nigeria’s debt sustainability path under the administration of President Bola Tinubu.
