Sanusi Critiques Nigeria's Borrowing Post-Subsidy Removal

Muhammadu Sanusi II, the former Governor of the Central Bank of Nigeria, expressed concerns regarding the federal government's rising borrowing after the removal of fuel subsidies. Speaking at the 5th annual lecture organized by Thenich, he questioned why the reduction in borrowing has not translated into visible improvements in public welfare.

Sanusi highlighted the contradiction of removing subsidies while continuing to borrow, emphasizing that the government should not rely on borrowing without fiscal discipline. His comments come amid a controversial loan request by President Bola Ahmed Tinubu for a $516 million loan to fund the Sokoto-Badagry superhighway project.

Sanusi warned that reforms must go beyond policy announcements and deliver measurable outcomes for citizens. He also pointed out the need for better coordination of economic policies, particularly in the context of Nigeria's reliance on fuel subsidies and the liberalization of the foreign exchange market.

He stressed that the current economic situation requires a disciplined approach to prevent further economic distortions.