At the ongoing 31st Nigerian Economic Summit, conversations around Nigeria’s fiscal landscape and the direction of its economic reforms took center stage as former Central Bank of Nigeria (CBN) governor and current Emir of Kano, Muhammadu Sanusi II, delivered a strongly worded analysis of the nation’s progress, challenges, and prospects for sustainable recovery.
Speaking during a session following a presentation by Taiwo Oyedele, Chairman of the Presidential Committee on Tax and Fiscal Policy Reform, Sanusi said the government’s current policies had stabilized the economy after years of instability caused by loose monetary controls, wasteful subsidies, and unsustainable borrowing.
According to him, Nigeria has moved from the brink of economic collapse to a period of cautious recovery. “Interest rates are high, yes, but we have stabilized the exchange rate, built reserves to over $40 billion, and achieved GDP growth higher than population growth for the first time in years,” he said.
The former CBN governor, however, warned that Nigeria must urgently address its high cost of governance. “We’re still spending too much on political appointments and overheads. Without improving the quality of spending, we will end up borrowing again,” he cautioned.
Sanusi challenged the long-held belief that Nigeria is an oil-dependent nation. He explained that oil now contributes less than 10 percent to the country’s GDP, even though government revenues and foreign exchange still rely heavily on it. He noted that the real growth sectors in recent decades have been services including telecommunications, finance, education, and healthcare. “What we need is not diversification of production but diversification of government revenue. We must widen the tax base and rely more on domestic income and productivity,” he added.
Reflecting on the controversial removal of the fuel subsidy, Sanusi described the move as necessary “shock therapy.” He said gradual removal would never have succeeded due to entrenched interests that benefited from the subsidy regime. “When I was CBN governor in 2011, we advised the president to remove subsidies. Those who opposed it then are the ones doing it now because they’ve realized it had to be done,” he said.
He emphasized that Nigeria was bankrupt before the reforms, borrowing to pay subsidies and using 100 percent of its revenue to service debt. “Without those tough measures, Nigeria would have gone the way of Venezuela or Zimbabwe,” he warned.
Sanusi also addressed the recent controversy involving the Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). He described the incident as “sad” and “counterproductive” to national investment efforts. “The Dangote Refinery is a $20 billion private investment that should be protected, not attacked,” he said. “We cannot threaten a nationwide strike over a dispute with a private company. That’s irresponsible and sends the wrong signals to investors.”
Sanusi urged both the company and the unions to act within the law but insisted that no patriotic Nigerian should undermine a project that saves foreign exchange and creates jobs.
On the policies of President Bola Tinubu’s administration, Sanusi said the government had taken “bold and correct” steps to restore economic stability. “They’ve done what economists have called for over the last decade, removing subsidies, liberalizing the exchange rate, and rebuilding reserves. These actions have pulled the economy back from the brink,” he said.
He, however, stressed that Nigeria must now pursue double-digit growth to reduce poverty. “Four percent growth is not enough. We must fix infrastructure, power, agriculture, education, and healthcare, the building blocks of prosperity,” he stated.
In his closing remarks, Sanusi urged the government to complement financial reforms with institutional integrity and ethical renewal. “Reform cannot just be about money; it must also be about governance, ethics, and credibility. Institutions and leaders must have integrity if we are to rebuild public trust,” he said.
While acknowledging that citizens are facing hardship due to the reforms, Sanusi maintained that the short-term pain was preferable to the long-term economic disaster Nigeria narrowly escaped. “The government must provide relief, yes, but the truth is we are paying the price for years of mismanagement. We have avoided the abyss, and now we must rebuild on a foundation of discipline and transparency,” he concluded.
