Those who blocked Jonathan’s subsidy removal later imposed harsher pain – Sanusi

The Emir of Kano, Muhammadu Sanusi II, has said Nigeria’s current economic hardship could have been significantly milder if fuel subsidy had been removed earlier in 2013, noting that those who opposed its removal under former President Goodluck Jonathan later implemented the policy under more difficult conditions.

Sanusi made the remarks in Lagos while delivering comments at The Niche Lecture 2026, themed “Governing the Economy: Choices, Trade-offs, and National Priorities.”

The former Central Bank governor used the platform to commend Abia State Governor and guest lecturer, Dr. Alex Otti, describing him as one of the few public officials with both the intellectual depth and practical experience to speak credibly on economic management.

Recalling their professional relationship in the banking sector, Sanusi said their frequent disagreements – he in risk management and Otti in corporate banking – reflected a healthy balance between caution and growth.

According to him, Otti’s performance in Abia has validated his competence.

“If anyone doubts Alex’s capacity, they only need to look at Abia today – roads, bridges, electricity, industries. That is what leadership is about,” he said.

He stressed that public office should not be seen as a means of personal enrichment, warning that politics in Nigeria has been reduced to a profit-driven venture.

“Public service is an honour. If you want to make money, go into business. You do not become a governor or president to make money,” he said.

Sanusi argued that Nigeria’s governance challenges are not due to a lack of education among leaders, but rather a deficit in character and political will.

“Most people in power went to school. The issue is not learning, but behaviour and values,” he said, adding that economic mismanagement in the country often defies even basic economic reasoning.

He criticised a culture of silence among elites, noting that many fail to speak truth to power while leaders are in office, only to become vocal after they leave.

“There is no point criticising dead leaders. You must speak when they are in power,” he said.

On fuel subsidy, Sanusi maintained that its removal was inevitable, describing the policy as fiscally unsustainable.

He said prolonged practices such as inflated fuel import figures, excessive reliance on central bank financing, and attempts to artificially stabilise the naira had long set the economy on a dangerous path.

“There is no serious economist who did not see this coming 10 years ago,” he stated.

However, he faulted the sequencing of reforms under President Bola Ahmed Tinubu, arguing that subsidy removal and exchange rate liberalisation were implemented without first tightening monetary conditions.

“If you liberalise the exchange rate in a loose monetary environment, the naira will collapse. That is what we are seeing,” he said.

Sanusi also questioned why borrowing has continued despite the removal of subsidy.

“If we are no longer paying subsidy, why are we still borrowing heavily? Nigerians need to see the benefits,” he added.

The Emir noted that Nigeria missed a critical opportunity to implement less painful reforms over a decade ago.

He recalled that during Jonathan’s administration, subsidy removal would have led to only a modest increase in inflation – from about 11 to 13 per cent – but was resisted by many who later supported its removal.

“Those who stopped the removal then are the same people who removed it years later, when the consequences became far more severe,” he said.

According to him, had the policy been implemented earlier, the economic shock experienced in 2023 would have been significantly reduced.

Sanusi also emphasised the need for clarity about the nature of the Nigerian state, arguing that this determines policy direction and outcomes.

He outlined three possible models: a developmental state focused on citizens’ welfare, a rent-seeking state driven by elite extraction, and a kleptocratic system designed to enrich those in power.

“If governance is seen as a means to make money, then all policies will be designed for that purpose,” he warned.

2027 and the Choice Before Abia Voters

Turning again to Abia, Sanusi recalled Alex Otti’s disputed 2015 governorship loss, insisting that it was the people who ultimately suffered.

Looking ahead to 2027, he said the electorate faces a clear choice.

“They can retain him and continue on the path of development, or remove him and return to handouts at the expense of progress,” he said.

Sanusi concluded by urging Nigerians, especially elites, to be more courageous in holding leaders accountable.

“We are in an economic crisis. Some necessary steps have been taken, but many critical reforms are yet to be done. We must have the courage to speak, advise, and demand change,” he said.