The Emir of Kano, Muhammadu Sanusi II, has questioned the Federal Government's decision to seek fresh loans despite the removal of petrol subsidy. Speaking in a Friday interview on News Central TV, the former Central Bank of Nigeria governor said weak fiscal discipline could erode gains from recent economic reforms. Sanusi, a long-time critic of the subsidy regime, described it as unsustainable but stressed that removing it must be matched with responsible spending. He pointed out the contradiction in eliminating a major expenditure while continuing to borrow heavily. "We've removed the subsidy. We're now spending it. What we should not see is fiscal consolidation. You cannot remove wastages and continue borrowing," he said. Sanusi attributed the naira's sharp depreciation to the timing of reforms, particularly liberalising the exchange rate amid loose monetary conditions. "Artificial exchange rates, especially when you're printing money, cannot work. There was going to be a devaluation," he noted. He welcomed progress in domestic refining, saying Nigeria is no longer importing fuel and has begun exporting to Europe. President Bola Ahmed Tinubu recently requested Senate approval for a $516.3 million loan to fund parts of the 1,000-kilometre Sokoto–Badagry Superhighway. The project aims to link Nigeria's North-West and South-West regions. The loan proposal has faced criticism, including from former Vice-President Atiku Abubakar, who supported the road but urged the government to seek alternative funding.
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