Presidency Fires Back at Sanusi: Nigeria Borrowing Billions to Fix Infrastructure, Not to Waste

Bwala Pushes Back on Sanusi’s Fiscal Criticism

The Nigerian presidency has fired back at Emir of Kano Muhammadu Sanusi II after the former Central Bank Governor publicly questioned why the Tinubu administration continues to borrow heavily despite removing the fuel subsidy. Presidential aide Daniel Bwala took to X on Friday to defend the government’s debt strategy, framing it as necessary investment rather than fiscal recklessness.

“Your Royal Highness, we are simply borrowing to invest in the most important areas of our economy, with infrastructure being the most crucial of them all,” Bwala wrote, addressing Sanusi directly. He argued that Nigeria requires between $30 billion and $100 billion annually just to fix its infrastructure deficit — far more than current spending levels.

What Sanusi Actually Said

Sanusi’s original remarks struck a nerve because they came from a man who helped design Nigeria’s monetary policy. He argued that the subsidy removal was sold to Nigerians as a path to fiscal sanity — but the expected reduction in borrowing has not followed. The Emir pointed out that Nigeria can no longer justify subsidising foreign refineries as an oil-producing nation, while also noting that progress on domestic refining and exports is economically sound.

His core concern: the savings from scrapping the subsidy should have translated into measurable improvements in Nigeria’s borrowing profile. So far, he said, they have not.

The Credibility Gap

The exchange highlights a tension that has followed Tinubu’s economic programme since day one. Proponents argue that upfront borrowing for infrastructure is a legitimate development strategy. Critics — including Sanusi — say that without clear fiscal benchmarks and visible debt reduction, the subsidy removal looks like a revenue measure that freed up money to borrow more, not less.

Bwala’s response does not directly address Sanusi’s concern about the trajectory of borrowing. It reframes the conversation around investment necessity, but stops short of explaining when and how the debt level will stabilise.

Sources: Daily Post, Arise TV, The Times Nigeria