Sanusi Questions Rising Debt Despite Subsidy Removal
Former Governor of the Central Bank of Nigeria, Muhammadu Sanusi II, has raised concerns over Nigeria’s growing debt profile under President Bola Ahmed Tinubu, despite the removal of fuel subsidy.
Sanusi made the remarks on Friday during a public event, where he questioned what he described as a disconnect between the government’s policy objectives and the current fiscal situation. His comments come amid ongoing economic challenges faced by Nigerians following the removal of fuel subsidy in 2023.
He queried the rationale behind continued borrowing, noting that the subsidy removal was initially presented as a measure to free up funds for national development. “Why are we still borrowing? The whole argument for removing subsidy was to free up funds for development. If we have removed it, where is the money going?” he asked.
According to Sanusi, the policy was intended to redirect resources toward critical sectors such as infrastructure, healthcare, and social services. However, he noted that the rising debt levels suggest that the expected fiscal relief may not have materialised as anticipated.
He emphasised the need for greater transparency in government spending, stating that citizens deserve clear and detailed explanations on how public revenues are being utilised. He warned that a lack of openness could erode public confidence in economic policies.
Sanusi clarified that borrowing in itself is not inherently problematic, explaining that loans can be beneficial if they are tied to productive investments. However, he stressed that the government must demonstrate tangible outcomes from such borrowing.
According to him, Nigerians should be able to see clear evidence of how loans are translating into development projects and economic growth.
His remarks add to the ongoing debate over Nigeria’s fiscal direction since the removal of fuel subsidy, a key policy decision by the Tinubu administration that led to a sharp increase in petrol prices and the cost of living.
As of the time of filing this report, the Federal Government had not issued an official response to Sanusi’s comments.
