Muhammadu Sanusi II, the 16th Emir of Kano and former Governor of the Central Bank of Nigeria (CBN), has publicly criticized the Nigerian Federal Government’s continued reliance on borrowing despite the revenue gains from the removal of the petrol subsidy and the unification of exchange rates.
Speaking at a conference in Abuja, Sanusi warned that the economic reforms risk failure without corresponding fiscal discipline and a drastic reduction in government waste.
President Bola Tinubu’s administration initiated two major economic reforms upon assuming office; the removal of the fuel subsidy and the unification of multiple exchange rate windows. These steps when implemented, were supported by economic experts like Sanusi as essential for preventing national bankruptcy and stabilizing monetary policy.
The former CBN governor’s critique focuses on the fiscal side of the government’s operations. Sanusi argued that the benefits derived from saving billions previously spent on subsidies are being undermined by persistent poor spending quality, high costs of governance and the continued appetite for debt. The Debt Management Office (DMO) reported that Nigeria’s total public debt stood at ₦152.39 trillion as of June 2025, stressing the urgency of fiscal restraint.
Finance Minister Wale Edun, speaking at the same event, countered the criticism by emphasizing the government’s efforts to use the savings transparently.
Edun announced a robust, digital system is in place to provide cash transfers to 15 million vulnerable households, stating,
Each beneficiary is identified by name and national identity number, and payments are made digitally… There is accountability, transparency, and a record – Minister Edun
Other economists at the forum, like former World Bank Vice President Arunma Oteh, called for increased investment in infrastructure to drive sustainable growth.
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