The Emir of Kano and former Governor of the Central Bank of Nigeria (CBN), Muhammad Sanusi II, has said that the removal of petrol subsidy prevented Nigeria from sliding into bankruptcy.
Speaking at the second edition of the Kano International Poetry Festival (KAPFEST), organised by the Poetic Wednesdays Initiative, Sanusi described the subsidy regime as unsustainable, warning that it had become a major drain on government finances.
He explained that the policy forced government to absorb the impact of fluctuating global oil prices, unstable exchange rates, and refining costs, allowing Nigerians to buy petrol below market value while the state paid the difference.
“Subsidy was simply the government saying, ‘If petrol is N100, Nigerians will pay N70 and I will cover the balance.’ Beyond that, petrol was fixed at N65 per litre whether oil sold for $10 or $100 per barrel. The gap was always paid by government, and that path could only lead to bankruptcy,” Sanusi said.
The monarch criticised successive administrations for failing to revive local refineries, arguing that subsidies enriched foreign refiners while denying Nigeria much-needed jobs and industrial growth. He noted that billions spent on subsidies could have built domestic refining capacity and strengthened the economy.
While clarifying that he was not against subsidies in principle, Sanusi said such interventions should be targeted at production rather than consumption.
Recalling his warnings as CBN governor in 2012, he likened the subsidy system to “a man running towards a ditch,” stressing that dwindling revenues had forced the country to borrow, not only to sustain the payments but also to service the debts that followed.
“It became unsustainable. That is exactly what I said would happen, and this is where we are,” he added.
Sanusi urged Nigerians to view subsidy removal not merely as an economic necessity but also as an opportunity to rebuild the country on principles of sustainability and self-reliance.
