The Digest:
Former Central Bank Governor and Emir of Kano, Muhammadu Sanusi II, has strongly defended the removal of the petrol subsidy, stating it prevented Nigeria from impending bankruptcy. Speaking at the Kano International Poetry Festival, the monarch argued that the subsidy regime was economically unsustainable and diverted critical funds from national development.
Key Points:
- Sanusi described the subsidy as a fixed-price hedge that forced the government to absorb all market fluctuations.
- He emphasized that the policy placed an unbearable burden on public finances, leading to excessive borrowing.
- The Emir criticized past governments for failing to repair refineries, noting subsidies enriched foreign refiners instead of creating local jobs.
- He recalled warning as CBN governor in 2012 that subsidies would lead the country into a debt trap.
- Sanusi clarified he supports subsidies on production, not consumption, to encourage local industry.
- He framed the removal as a necessary step toward building a self-reliant economy.
- His comments come amid ongoing public debate about the policy’s impact on inflation and living standards.
Sources: The Cable
