The Emir of Kano, Muhammadu Sanusi II, has expressed renewed concern over Nigeria’s rising debt levels, questioning why the Federal Government continues to borrow despite eliminating petrol subsidies.

In an interview with News Central TV, the former Central Bank governor acknowledged that reforms such as subsidy removal and exchange rate liberalisation were necessary steps. However, he cautioned that poor timing and weak fiscal coordination could erode their intended benefits.

Sanusi criticised Nigeria’s long-standing reliance on foreign refineries, describing it as a structural weakness, especially given the country’s status as an oil producer. He argued that it made little sense to support refining abroad while domestic capacity remained underutilised.

At the same time, he welcomed recent improvements in local refining, noting that Nigeria has begun reducing imports and even exporting petroleum products, a development he described as positive for the economy.

Despite backing the reforms in principle, Sanusi raised concerns about how they were implemented, suggesting that key policies may not have been properly sequenced. He explained that exchange rate liberalisation introduced under loose monetary conditions contributed to the sharp depreciation of the naira.

According to him, removing subsidies was inevitable, especially given the strain of debt servicing on government revenue. However, he stressed that such a move should have been accompanied by tighter monetary controls to stabilise the currency.

Sanusi also questioned the government’s continued reliance on borrowing, arguing that savings from subsidy removal should have been used to strengthen public finances rather than accumulate more debt.

His comments come amid reports of an expanded borrowing plan for 2026 and fresh loan requests by President Bola Tinubu, prompting further debate over fiscal discipline and the management of reform gains.