Muhammad Sanusi II, Emir of Kano and former governor of the Central Bank of Nigeria (CBN), has said that the removal of the petrol subsidy saved Nigeria from falling into bankruptcy.

Sanusi made this known on Saturday during the second edition of the Kano International Poetry Festival (KAPFEST), organised by the Poetic Wednesdays Initiative.

The monarch described the subsidy arrangement as unsustainable, noting that it transferred the impact of global oil price changes, exchange rate instability, transportation costs, and refining expenses directly onto government finances.

He explained, “Subsidy was simply the government saying, ‘If the price of petrol is N100, Nigerians will pay N70 and I will pay N30.’”

“But beyond that, the government also placed a hedge, fixing petrol at N65 per litre irrespective of whether the international price of oil was $10 or $100 per barrel. Who paid the difference? The government. And this was always going to bankrupt Nigeria.”

Sanusi faulted successive governments for neglecting to repair local refineries, insisting that subsidies merely enriched foreign refineries while draining jobs out of the country.

“If you look at the billions and billions spent on subsidy and imagine that money invested in refineries, Nigeria would not be where it is today,” he said.

“I have nothing against subsidies if you are subsidising production. My objection has always been subsidy on consumption.”

The emir recalled that back in 2012, while serving as CBN governor, he had likened the subsidy system to “a man running towards a ditch.”

“Government revenue could no longer carry the subsidy burden. At some point, we began borrowing to pay the subsidy, then borrowing to service the debt. It became unsustainable. That is exactly what I said would happen, and this is where we are,” he said.

Sanusi concluded by saying that removing the subsidy should be seen not only as an economic adjustment but also as a chance to build a stronger and more self-reliant Nigeria.

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