Sanusi Critiques Nigeria's Borrowing Amid Fuel Subsidy Removal

In an interview with Post New Central TV on Friday, Lamido Sanusi, the former Governor of the Central Bank of Nigeria, questioned the Nigerian government's continued reliance on borrowing, especially following the removal of fuel subsidies. Sanusi assessed Nigeria's current fiscal trajectory, highlighting that the lack of fiscal discipline poses a threat to the potential benefits of recent reforms.

He argued that while the removal of fuel subsidies and the liberalization of the exchange rate are necessary, the country must address its dormant domestic refining capacity. Sanusi criticized the unsustainable nature of the subsidy regime, stating that Nigeria cannot continue to support foreign refineries while failing to utilize its own refining capabilities.

He expressed optimism about the current shift towards domestic production of petroleum products, noting that the country has moved heavily towards importing these products despite having the potential to refine them locally.