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The Emir of Kano and former Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi, and President Bola Tinubu’s aide, Daniel Bwala, have clashed over government borrowing despite the removal of subsidies.
Sanusi Lamido Sanusi, speaking on Thursday at TheNiche 2026 Annual Lecture themed “Governing the Economy: Choices, Trade-offs, and National Priorities” in Lagos, questioned why the Nigerian government was still borrowing despite the removal of petrol subsidies.
“If you’re not paying the subsidy and you’ve got the money, why are we still borrowing.”
Emir of Kano State, Sanusi Lamido Sanusi, says if the subsidy has ended, citizens should begin to see stronger public finances and practical benefits across the economy. pic.twitter.com/TIbNjRsCo5
— News Central TV (@NewsCentralTV) April 24, 2026
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“We’ve removed the subsidy. We are not spending it. What we should now see is fiscal consolidation. You cannot remove wastages and continue borrowing,” Sanusi said.
“You need to see the benefits. If you are not paying the subsidy and you’ve got the money, why are we still borrowing and borrowing? What are we borrowing for?”
Tinubu announced the removal of the fuel subsidy during his inauguration on May 29, 2023, and the government promised to redirect the savings to critical sectors of the economy.
However, borrowing has since increased significantly. Nigeria’s total public debt stood at N159.28 trillion as of December 31, 2025. Recently, President Tinubu forwarded a $516 million borrowing request to the National Assembly for the construction of sections of the Sokoto–Badagry superhighway project.
Sanusi said the removal of the subsidy was a good intervention, but questioned the timing of its implementation.
“Now, were they done at the right time? Those are certain questions. Were there other things that should be done that have not been done? These are other issues. I think we must make that decision.”
Bwala, in a post on X, defended the government’s borrowing, explaining that it borrows to fund infrastructure development.
Your Royal highness, we are simply borrowing to invest in the critical sectors of our economy, the chiefest of which is INFRASTRUCTURE
The infrastructure deficit requires a yearly investment of atleast $30B-100B and what we have is insufficient, hence the borrowing…— D. H Bwala (@BwalaDaniel) April 24, 2026
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“Your Royal Highness, we are simply borrowing to invest in the critical sectors of our economy, the chiefest of which is infrastructure. The infrastructure deficit requires a yearly investment of atleast $30B-100B and what we have is insufficient, hence the borrowing,” he wrote.
