Former Central Bank of Nigeria (CBN) Governor and Emir of Kano, Muhammadu Sanusi II, has cautioned that Nigeria risks worsening its economic challenges if government borrowing continues to rise despite the removal of fuel subsidies.
Speaking at a leadership conference themed “Reimagining Leadership and Governance in a Changing Africa,” Sanusi said that while subsidy removal was a necessary step, the government must ensure that the savings are managed prudently and channeled into productive use.
“If you stop paying subsidies but continue borrowing more, it means you’ve filled one hole only to dig another,” Sanusi said. “The real challenge now is the quality of government spending and the management of the revenues saved.”
Sanusi, who served as CBN Governor from 2009 to 2014, said the current economic hardship facing Nigerians is the outcome of years of policy inconsistency, fiscal indiscipline, and populist politics. He recalled that many of the political figures who once opposed subsidy removal in 2012 are now the ones implementing it after realizing its unsustainable cost to the economy.
“In 2012, we warned that the subsidy was unsustainable, but politics took over,” he recalled. “Now the same people who led protests against it have inherited the problem and had no choice but to do the right thing.”
The Emir commended the efforts of the current economic management team, including Finance Minister Wale Edun and CBN Governor Yemi Cardoso, describing their policies as professional and well-intentioned, particularly in tackling inflation and exchange rate instability.
However, he emphasized that fiscal discipline, transparency, and exemplary leadership are crucial if the reforms are to succeed.
“Why do we need 48 ministers? Why do we need long convoys of vehicles and endless travel expenses?” he queried. “We cannot preach sacrifice to the people while living in luxury at the top.”
Sanusi urged the government to cut wasteful spending, reduce the size of the cabinet, and restore public confidence through accountable leadership.
At the same conference, Atedo Peterside, founder of Stanbic IBTC Bank, echoed Sanusi’s sentiments, stressing that subsidy removal alone does not guarantee progress unless government demonstrates prudent use of public funds.
Both leaders agreed that Nigeria’s economic recovery hinges not only on bold reforms but also on moral integrity and ethical governance among those in power.“It’s not true that pain automatically brings gain,” Peterside warned. “Gain only follows pain if the government spends wisely, eliminates waste, and supports the poor.”
Sanusi concluded with a powerful metaphor, underscoring the link between policy and accountability:
“Good policy without good governance is like planting a tree and refusing to water it,” he said. “Nigeria’s leaders must stop surrounding themselves with praise singers and start listening to the truth, even when it is uncomfortable.”
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