Why are we Still Borrowing?', Sanusi Questions Rising Debt Despite Subsidy Removal

Former Central Bank of Nigeria Governor and Emir of Kano, Muhammadu Sanusi II, has questioned the Federal Government’s continued borrowing despite the removal of fuel subsidy. Speaking at a public event on Friday, Sanusi said the government should explain why debt levels keep rising when subsidy payments, which previously consumed a large portion of revenue, have been stopped. “Why are we still borrowing?” he asked. “The whole argument for removing subsidy was to free up funds for development. If we have removed it, where is the money going?” Sanusi noted that Nigerians were told subsidy removal would reduce fiscal pressure and create room for infrastructure and social spending. He urged the government to be transparent about revenue inflows and expenditure to maintain public trust. He added that borrowing is not inherently bad if tied to productive projects, but said the government must show clear benefits from loans to justify the rising debt profile. The Federal Government has not issued an official response to his remarks as of press time.

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