By The9jaTREND
The Emir of Kano, Sanusi Lamido Sanusi, has reiterated that Nigeria had no choice but to remove fuel subsidy, warning that the previous system was no longer sustainable.
According to him, “I have always said the subsidy regime was unsustainable. We cannot continue supporting foreign refineries when we’re an oil-producing country.”
He also dismissed artificial exchange rate controls, stating: “Artificial exchange rates, especially printing money, can’t work, there will be devaluation.”
Sanusi maintained that the reforms themselves were correct:
“For me, removing subsidy or liberalizing exchange rates, these are good interventions.”
However, he raised concerns about execution, particularly timing:
“If you decide to remove subsidy and liberalize exchange rates in an environment of very loose monetary conditions… the naira drops to a bottomless pit.”
He stressed that Nigeria’s fiscal situation made subsidy removal unavoidable:
“When you get to a point where 100% of your revenue goes into debt service, you cannot continue.”
Despite this, he questioned why borrowing continues after subsidy removal: “We’ve removed the subsidy… What we should now see is fiscal consolidation. You cannot remove subsidies and continue borrowing.”
He ended with a direct challenge:
“If you’re not paying subsidy and you have the money, why are we still borrowing? What are we borrowing for?”.