The Emir of Kano, Muhammadu Sanusi II, and the founder of Stanbic IBTC Bank, Atedo Peterside, have urged President Bola Tinubu’s government to ensure that its economic reforms are inclusive and fiscally disciplined. Mr Sanusi warned that the government’s penchant for borrowing is tantamount to digging an economic “hole”.

They made the call in Abuja during a high-level dialogue on Nigeria’s economic direction, governance, and reform priorities, at the Oxford Global Think-Tank Leadership Conference and Book Launch.

While commending the bold reforms, both cautioned that the government must address rising poverty and the cost of living by curbing waste and directing resources to help ordinary Nigerians.

Mr Sanusi commended Mr Tinubu for removing fuel subsidy and unifying exchange rates, describing both as “painful but necessary steps”.

“We were paying the difference between global oil prices and a fixed local pump price with borrowed money. That was not a subsidy; it was an unsustainable hedge that led us to bankruptcy,” the former Central Bank of Nigeria governor stated.

He, however, cautioned that without institutional reforms and prudent spending, Nigeria risks undoing the benefits of the painful but necessary economic adjustments.

“If you stop paying subsidies but continue to borrow more, it means you filled one hole only to dig another. This government needs to look at institutions, procurement processes, and the quality of spending,” added Mr Sanusi. “Otherwise, we’ll undo the progress already made.”

The ex-CBN governor pointed out that he and other reform advocates warned against subsidy when he was in the office. He, however, said, “Nigeria is plagued by too many sycophants in government. In 2012, we warned that the subsidy was unsustainable, but politics took over.”

Mr Sanusi praised the current economic team led by finance minister Wale Edun and CBN governor Yemi Cardoso, noting that they have stabilised inflation and exchange rate volatility, but urged the government to reduce waste and the size of its cabinet.

He also highlighted the need to reduce governance costs. Mr Sanusi urged ministers and presidential advisers to restore integrity to public service by speaking truth to power, saying blind loyalty has been one of Nigeria’s greatest obstacles to progress.

Mr Peterside commended Mr Tinubu’s administration for removing fuel subsidy and introducing a market-determined exchange rate. He, however, said the real test of leadership lay in how the revenues saved were utilised.

“The government has done the correct thing in removing an unaffordable subsidy and allowing market-determined exchange rates,” Mr Peterside explained. “What is the point of giving a thief more revenue if he’s only going to steal it? The real test is what is being done with that money.”

He stressed the need for government at all levels to cut the cost of governance, saying, “After removing the subsidy, the next step should have been immediate cash transfers to the poorest Nigerians to cushion the pain.”

Mr Peterside reiterated that structural reforms must be accompanied by good governance and social protection to ensure that economic pain translates into real gains for citizens.

“It’s not true that pain automatically leads to gain. Gain follows pain only if you do the right things afterward — reduce waste, invest in productive sectors, and support the poor,” he said.

(NAN)