His comments came amid controversy over a fresh loan request by President Bola Tinubu, who has asked the Senate to approve a $516.3 million loan for sections of the proposed Sokoto–Badagry Superhighway. What Sanusi said last year This is not the first time that Sanusi, who served as apex bank boss between 2009 and 2014, would criticize the government for continuous borrowing despite available resources in Nigeria. In October 2025, Sanusi faulted the President Bola Tinubu-led administration for resorting to borrowing despite the removal of petrol subsidy, a policy that was expected to boost government revenue.

He aired his views when he spoke at the Oxford Global Think Tank Leadership Conference and Book Launch. He questioned the logic behind continuous borrowings when, according to him, “the government should have more fiscal space” after ending the costly fuel subsidy regime. “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. “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,” Sanusi had said.

What are we borrowing for? Reiterating his position on Friday, the former apex bank boss warned that weak fiscal discipline could undermine the gains expected from recent economic reforms. Tinubu had in a letter to the Senate President, Godswill Akpabio, said the 1,000-kilometre project is intended to connect Nigeria’s North-West and South-West regions.

Weekend Trust reports that the fresh borrowing plan has drawn criticism from several quarters, including former Vice-President Atiku Abubakar, who described the project as commendable but urged the government to explore alternative funding options instead of increasing debt. Speaking further on the matter, Sanusi, who has long criticised the subsidy regime, reiterated that it was unsustainable and faulted the country’s previous dependence on foreign refineries while domestic facilities remained underutilised. “We cannot continue supporting foreign refineries as an oil-producing country while our own refineries are not functioning,” he said.

He, however, acknowledged recent improvements in the sector, noting that Nigeria is beginning to shift from heavy reliance on imports to domestic refining and export. “Today, we have our own domestic refinery. We are no longer importing petroleum products; we are even exporting to Europe.

That is positive for the economy,” he added. Despite backing the policy direction, the former CBN governor questioned the sequencing and timing of the reforms, particularly the removal of subsidy and liberalisation of the foreign exchange market. He argued that implementing such measures in a loose monetary environment contributed to the sharp depreciation of the naira.

“Artificial exchange rates, especially when you’re printing money, cannot work. There was going to be a devaluation.” “For me, removing subsidies or liberalising exchange rates are good interventions. 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.

“Liberalising the exchange rate in a loose monetary environment contributed to the currency’s rapid depreciation. “It’s not enough to say, oh, they removed the subsidy. You had to.

When you get to a point where 100% of your revenue goes into debt service, you cannot continue. Where is the money going to come from? “However, if you decide to remove subsidies and liberalise exchange rates in an environment of very loose monetary conditions, before you have tightened money supply, the Naira drops to a bottomless pit.

That was a timing issue. “We’ve removed the subsidy. We’re now spending it. What we should not see is fiscal consolidation.

You cannot remove wastages and continue borrowing. “I’ve said this before. You need to see the benefits. If you’re not paying the subsidy and you’ve got the money, why are we still borrowing and borrowing? What are we borrowing for?”