Muhammad Sanusi II, Emir of Kano and former governor of the Central Bank of Nigeria (CBN), has declared that the removal of petrol subsidy prevented Nigeria from going bankrupt.
Speaking on Saturday at the second edition of the Kano International Poetry Festival (KAPFEST), organised by the Poetic Wednesdays Initiative, Sanusi described the subsidy regime as a drain on government finances and an obstacle to economic growth.
“Subsidy was simply the government saying, ‘If the price of petrol is ₦100, Nigerians will pay ₦70 and I will pay ₦30,’” he said.
“Beyond that, government fixed petrol at ₦65 per litre, whether oil sold for $10 or $100 per barrel. Who paid the difference? The government. That was always going to bankrupt Nigeria.”
Sanusi criticised past governments for failing to repair local refineries, saying subsidy spending only benefited foreign refineries while exporting Nigerian jobs.
He stressed that while he supports subsidies on production, he has always opposed subsidies on consumption.
Recalling his warnings as CBN governor in 2012, Sanusi said the country’s finances had long been on an unsustainable path.
“At some point, we began borrowing to pay subsidy, then borrowing to service the debt. It became unsustainable. That is exactly what I said would happen, and this is where we are,” he said.
The emir urged Nigerians to see the policy not just as an austerity measure but as a chance to build a stronger, self-reliant economy.
