Sanusi Questions FG's Borrowing After Fuel Subsidy Removal

Sanusi, the former apex bank chief, has raised concerns regarding the Nigerian federal government's ongoing reliance on borrowing despite the removal of fuel subsidies. In an interview with New Central TV, he questioned the government's fiscal discipline and the necessity of borrowing when subsidies are no longer in place.

Sanusi argued that the liberalization of the exchange rate and a looser monetary environment have contributed to the rapid depreciation of the currency. He highlighted the importance of addressing the failure of Nigeria's domestic refining capacity, which remains dormant, while advocating for a shift towards supporting foreign refineries.

Despite these challenges, Sanusi expressed optimism about the current shift towards domestic product utilization. He noted that Nigeria has been heavily reliant on importing petroleum products, which underscores the need for effective policy shifts to enhance local production capabilities.