Ex-CBN Governor questions government’s debt drive, insists subsidy savings must reflect in disciplined spending and stronger fiscal management

Former Central Bank of Nigeria (CBN) Governor and Emir of Kano, Muhammadu Sanusi II (Lamido Sanusi), has taken aim at the Federal Government’s ongoing borrowing spree, questioning why the country is still accumulating debt despite the removal of fuel subsidy.

Speaking on Nigeria’s fiscal direction, Sanusi argued that the expectation after subsidy removal was a significant easing of financial pressure—not a continued dependence on loans. He said the current borrowing pattern raises serious concerns about how government revenue gains are being managed.

According to him, if subsidy payments have truly ended and revenues have improved, then persistent borrowing suggests deeper issues in fiscal discipline and public spending priorities. He warned that such a trend risks wiping out any economic gains achieved from the reform.

Sanusi stressed that Nigeria’s core challenge is no longer just revenue generation, but the efficiency, transparency, and accountability of government expenditure. Without strict control of spending, he said, rising debt levels could further weaken long-term economic stability.

He maintained that while subsidy removal remains a necessary reform, its benefits can only be sustained if matched with prudent financial management, reduced wastage, and stronger institutional oversight.

The former CBN chief also cautioned that failure to properly manage public finances could ultimately leave citizens worse off, despite the painful sacrifices already made through recent economic reforms.

His comments add fresh momentum to ongoing national debates over Nigeria’s growing debt burden and the effectiveness of the Tinubu administration’s economic policies.