Emir Sanusi II: Delayed Fuel Subsidy Removal to Blame for Current Economic Pain

The Emir of Kano and former Governor of the Central Bank of Nigeria (CBN), Muhammadu Sanusi II, has laid the responsibility for Nigeria’s current severe economic hardship squarely on the country’s failure to end the fuel subsidy more than a decade ago. He made this declaration while speaking at the Oxford Global Think Tank Leadership Conference in Abuja.

Dependable NG reports that the former CBN chief, who was a strong advocate for removing the subsidy during his tenure (2009-2014), asserted that if the government of former President Goodluck Jonathan had been allowed to implement the removal in 2011, the resulting pain would have been a “very tiny fraction” of the high inflation and distress being faced by Nigerians today. Sanusi argued that what the country called a subsidy was actually a dangerous financial arrangement known as a “naked hedge,” which guaranteed a fixed price regardless of global fluctuations, ultimately forcing the government to borrow money not just to pay the subsidy but also to service the interest on those loans—a policy he termed “bankruptcy by policy.”

Sanusi disclosed that the only reason the Jonathan administration compromised and did not proceed with the 100% removal in 2012 was due to security fears. He explained that with thousands of Nigerians protesting across cities like Lagos, Kano, and Kaduna, there was a real concern that a Boko Haram suicide bomber could attack the massive crowds. He gave President Jonathan credit for his determination but noted that the compromise was made to save lives. He further recalled that the CBN had calculated then that the inflationary impact would be a manageable rise from 11% to about 13%, stabilising within a year, a stark contrast to the 30%-plus inflation currently gripping the nation.

Beyond economic policy, Sanusi used the high-profile conference to issue a strong warning to President Bola Tinubu’s cabinet and aides, cautioning them against becoming “praise singers.” He lamented the culture of sycophancy in government, where those who speak the truth are often seen as enemies, urging public officials to prioritise integrity and courage by giving the President honest and critical advice. The Emir underscored that while he commends President Tinubu for finally removing the subsidy, these essential reforms will fail if they are not immediately followed by institutional discipline, aggressive cuts to government waste (such as large convoys and the number of ministers), and a renewed commitment to fiscal accountability.