The 16th Emir of Kano and former governor of the Central Bank of Nigeria (CBN) Muhammadu Sanusi II, has queried the rationale behind borrowings after the removal of petrol subsidy by the President Bola Ahmed Tinubu’s administration.
Speaking in Abuja yesterday at the Oxford Global Think Tank Leadership Conference and Book Launch, the emir said the removal of fuel subsidy had led to increased revenue.
Sanusi commended Tinubu’s administration for removing fuel subsidy and unifying exchange rates, describing both as “painful but necessary steps.”
He, however, cautioned that the reforms would fail unless matched with fiscal discipline and transparent spending.
If you stop paying subsidies but continue borrowing more, it means you’ve filled one hole only to dig another. The real challenge now is the quality of government spending and the management of the revenues saved,” he said.
Sanusi, who served as CBN governor between 2009 and 2014, said Nigeria’s current economic woes were the consequence of years of policy inconsistency and populist politics.
“In 2012, we warned that the subsidy was unsustainable, but politics took over. Now, the same people who led protests against it have inherited the problem and had no choice but to do the right thing,” he said.
He applauded the professionalism of the current economic team for the steps taken to stabilise inflation and reduce exchange rate volatility, but insisted that government waste must be urgently curtailed.
Questioning the government expenditure, he asked: “Why do we need 48 ministers? Why do we need convoys of vehicles? Why are we still borrowing even after removing subsidies? If you fill one hole, why dig another?
“This government needs to look at institutions, transparency and how money is being used at all levels. Because if you keep earning more and spending badly, you’ll undo every gain made.
We have too many sycophants in government. You sit in a meeting, and someone begins with, ‘Mr. President, I thank you for your leadership; God has blessed Nigeria by making you our leader.’ By the time they finish the praise-singing that is the advice the president takes.
“However, people like me that will say ‘Mr. President, this is wrong’ are branded enemies. So, when leaders surround themselves with praise-singers, they never get good advice.
“That is why people like Aigboje Aig-Imoukhuede and myself often end up being enemies of the state because people don’t like hearing bad news.
We told Buhari everything — about printing money, waste, exchange rates, and subsidy— but each time, it was seen as a personal attack. Those around him convinced him we were enemies. Leaders must begin to ask: who do I surround myself with?
“And ministers should know — it’s not to your benefit to become a praise-singer. You debase yourself when you do that..
Dailytrust
