Politics

Nigeria Escaped Bankruptcy Through Subsidy Removal, Says Emir Sanusi

Published by Akinwale Fakinlede on September 16th, 2025.

Nigeria Escaped Bankruptcy Through Subsidy Removal, Says Emir Sanusi

The Emir of Kano, Muhammadu Sanusi II, has declared that the removal of petrol subsidy was a critical decision that saved Nigeria from sliding into bankruptcy. According to the former Governor of the Central Bank of Nigeria (CBN), the long-standing subsidy regime was unsustainable and had drained the nation’s finances for decades.

Speaking at a public forum, Sanusi stressed that while subsidy removal initially caused hardship for Nigerians, it was a necessary step to prevent a complete collapse of the economy. He argued that successive governments had failed to take the bold move, allowing trillions of naira to be wasted in an opaque system that benefitted a few at the expense of the majority.

“Without removing fuel subsidy, Nigeria would have reached the point of bankruptcy. The country simply did not have the financial capacity to continue funding it,” Sanusi said.

He noted that resources previously tied to subsidy payments can now be redirected toward critical sectors such as education, healthcare, infrastructure, and social welfare programs. However, he urged the government to ensure transparency in the management of these funds so that the sacrifices of ordinary citizens will not be in vain.

Sanusi further highlighted that the global oil market has changed significantly, making subsidy payments more harmful to oil-producing countries like Nigeria. He emphasized that subsidy was effectively a “reverse investment,” where national wealth was continually eroded without producing tangible benefits.

The Emir called on Nigerians to be patient as the long-term benefits of the policy gradually manifest. He also challenged the government to cushion the impact of subsidy removal through targeted interventions that directly improve the living conditions of vulnerable citizens.

Analysts have echoed similar sentiments, noting that although the policy has caused inflationary pressures, it remains a vital step to stabilize Nigeria’s fiscal future and attract foreign investment.

With Sanusi’s bold endorsement, the national debate on subsidy removal continues, but the message is clear: tough reforms may be painful, yet they are necessary to secure the country’s e

conomic survival.