Petrol Subsidy Removal Saved Nigeria from Bankruptcy — Emir Sanusi

The Emir of Kano and former Governor of the Central Bank of Nigeria (CBN), Muhammad Sanusi II, has declared that the removal of petrol subsidy was a decisive step that saved Nigeria from looming bankruptcy.

Speaking at the second edition of the Kano International Poetry Festival on Saturday, Sanusi described the subsidy system as a drainpipe that weakened government finances and hampered development.

“Subsidy meant that if petrol was N100, Nigerians paid N70 while the government covered N30,” he explained. “The government even went further to fix the pump price at N65 per litre, irrespective of global oil market realities. Who paid the difference? Government. And that arrangement was bound to bankrupt Nigeria.”

Sanusi faulted past governments for prioritizing subsidy payments over investments in local refining capacity. He stressed that billions spent on subsidies only enriched foreign refineries while costing Nigerians jobs and industrial opportunities. According to him, channeling those funds into production, infrastructure, and social investments would have created long-term growth.

Recalling his warnings in 2012 as CBN governor, the Emir likened the policy to “a man running towards a ditch.” He said Nigeria eventually slipped into borrowing to sustain subsidies and later borrowing to service debts, a cycle he described as unsustainable.

Sanusi added that subsidy removal should not be viewed only as an economic reform but as an opportunity to reset the nation’s economy and promote self-reliance.

“This moment should be seen not just as a painful adjustment,” he remarked, “but as a chance to rebuild our economic foundations for the future.”

The remarks, widely circulated on Instagram via Instablog9ja, have continued to spark nationwide debate on whether subsidy removal will ultimately drive Nigeria toward sustainable recovery or deepen hardship for citizens.

Emir of Kano, Muhammad Sanusi II, says removing petrol subsidy saved Nigeria from imminent bankruptcy. He faults past governments for enriching foreign refineries and urges Nigerians to view subsidy removal as a path to rebuilding the economy.