In a country where economic decisions ripple quickly through markets and households, few voices carry the weight of Sanusi Lamido Sanusi. Known for his blunt assessments and refusal to dress up difficult truths, the Emir of Kano has once again stepped into the national conversation, this time with a pointed critique of the government led by Bola Ahmed Tinubu.
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| Sanusi Lamido the emir of Kano State. Photo credit: majeeda studio |
His message is clear: removing fuel subsidy was necessary, but it cannot exist side by side with continued heavy borrowing. For Sanusi, the contradiction is too glaring to ignore.
The End of an Expensive Illusion
For years, Nigeria’s fuel subsidy regime was treated as a political necessity, even as it drained public finances. Sanusi’s position has remained consistent: the system was unsustainable. Nigeria, despite being a major oil producer, found itself effectively subsidizing consumption while relying on imported refined products. In practical terms, this meant public funds were being used to support foreign refineries instead of building domestic capacity. According to Sanusi, this contradiction alone justified ending the subsidy.
His argument isn’t just ideological, it’s arithmetic. When a government spends beyond its means to artificially lower fuel prices, the burden eventually shows up somewhere else: rising debt, weakened currency, or reduced public investment.
Exchange Rate Reality Check
Sanusi did not stop at subsidy removal. He also addressed another long-standing issue in Nigeria’s economic management: exchange rate controls.
For years, attempts were made to artificially stabilize the naira. Sanusi dismissed this approach as ineffective, warning that printing money or holding exchange rates at unrealistic levels only delays the inevitable. In his view, devaluation becomes unavoidable when economic fundamentals are ignored.
His position aligns with a broader school of economic thought: markets eventually correct distortions, often more harshly when adjustments are delayed.
Good Policies, Questionable Timing
Interestingly, Sanusi is not opposed to the reforms themselves. In fact, he supports both subsidy removal and exchange rate liberalization. Where he draws the line is in how and when these policies are implemented.
Rolling out such major reforms in an environment of loose monetary policy, he argued, creates instability. The result? A rapidly depreciating currency and rising economic uncertainty.
His warning about the naira falling into a “bottomless pit” reflects concerns many Nigerians have already felt in real terms, through inflation, higher living costs, and reduced purchasing power.
The Debt Dilemma
Perhaps the most striking part of Sanusi’s intervention is his focus on Nigeria’s debt profile. At one point, he notes, the country was using virtually all its revenue to service debt. In such a situation, continuing with subsidy payments would have been financially reckless. That much, he says, is settled.
But this is where his argument sharpens: if subsidy removal was meant to ease fiscal pressure, why does borrowing continue?
For Sanusi, the expectation is simple, once a major expenditure like fuel subsidy is eliminated, the government should shift toward fiscal consolidation. That means reducing deficits, cutting unnecessary spending, and stabilizing the economy.
Instead, continued borrowing raises uncomfortable questions about where the savings are going.
A Question That Demands an Answer
Sanusi’s closing remark cuts through the policy jargon and lands squarely in the realm of accountability: If Nigeria is no longer paying for fuel subsidy and has freed up revenue, why is it still borrowing, and what exactly is that money being used for? It’s a question that resonates beyond economists and policymakers. For everyday Nigerians, it speaks to a deeper concern: whether difficult sacrifices are translating into real national progress.
Beyond Policy: Trust and Transparency
At its core, this debate is not just about subsidy or exchange rates. It’s about trust.
Economic reforms often require public buy-in, especially when they lead to short-term hardship. But that trust depends on transparency, on clear evidence that sacrifices are leading somewhere meaningful.
Sanusi’s intervention serves as both a critique and a challenge. The policies may be right, he suggests, but without disciplined execution and visible results, their credibility is at risk.
The Road Ahead
Nigeria stands at a critical economic crossroads. The decisions made now will shape not just fiscal stability, but also public confidence in governance. Sanusi has laid out a tough but necessary question. Whether the government answers it convincingly may determine how Nigerians judge the current wave of reforms, not just today, but for years to come.
By SUNDAY UNEKWUOJO SAMSON