ABUJA (FN), Former Central Bank Governor Sanusi Lamido Sanusi has questioned why Nigeria continues to borrow heavily despite the removal of fuel subsidies, a policy change that was expected to ease fiscal pressures on the government.
Speaking at a public forum, Sanusi argued that subsidy removal should have freed up significant revenue, reducing the need for external loans. “Why are we still borrowing after subsidy removal?” he asked, warning that unchecked debt accumulation could undermine long-term economic stability.
Sanusi, who has long been an outspoken critic of Nigeria’s fiscal management, said the government must demonstrate transparency in how savings from subsidy removal are being used. He stressed that borrowing should be tied to productive investments rather than recurrent expenditure.
His remarks come as Nigeria faces mounting debt obligations and rising concerns over the sustainability of its public finances. Analysts note that while subsidy removal was intended to create fiscal space, inflationary pressures and foreign exchange challenges have complicated the government’s economic outlook.
Sanusi’s intervention is likely to intensify debate over fiscal policy, with opposition figures and civil society groups already pressing the government to account for how subsidy savings are being deployed.
