…As Akpabio defends debt strategy
A growing debate over Nigeria’s fiscal direction has intensified, with the Emir of Kano, Sanusi Lamiɗo Sanusi, questioning the Federal Government’s continued reliance on borrowing despite the removal of petrol subsidy, while Senate President Godswill Akpabio insists the country’s debt remains within sustainable limits.
Sanusi, a former governor of the Central Bank of Nigeria (CBN), raised concerns about what he described as inconsistencies in Nigeria’s fiscal management, asking why borrowing persists even after the elimination of a major expenditure burden.
Speaking in an interview, he acknowledged that key reforms – such as subsidy removal and exchange rate liberalisation – were necessary, but warned that poor timing and weak fiscal discipline could undermine their intended benefits.
He criticised what he termed a long-standing structural imbalance in the oil sector, particularly Nigeria’s past dependence on foreign refineries despite being a major crude oil producer. According to him, sustaining such a model amounted to economic inefficiency and policy failure.
The monarch, however, noted encouraging signs of progress, pointing to the country’s shift toward domestic refining and reduced dependence on imports. He said Nigeria’s emerging capacity to refine petroleum locally and export products marks a positive turn for the economy, even as he maintained that reforms must be better sequenced to yield lasting gains.
Responding to Sanusi’s remarks, Senate President Godswill Akpabio dismissed concerns over excessive borrowing, arguing that the administration of President Bola Ahmed Tinubu has not taken on debt beyond sustainable thresholds.
Akpabio maintained that government borrowing remains a necessary tool for funding development projects and stimulating economic growth. He added that Nigeria’s fiscal framework still supports debt servicing, citing the country’s relatively low tax-to-GDP ratio as an opportunity for improved revenue generation.
The Senate President also pushed back against suggestions that the 10th National Assembly merely endorses Executive borrowing requests, stressing that lawmakers subject all loan proposals to rigorous scrutiny.
“The Senate is not a rubber stamp”, he said, noting that due diligence and legislative oversight guide approvals to ensure alignment with national interest and fiscal responsibility.
