Emir of Kano, Muhammadu Sanusi II, has raised fresh concerns over the Federal Government’s growing debt profile, questioning the rationale for continued borrowing despite the removal of petrol subsidy.

Speaking during an interview published by News Central TV on Friday, the former Governor of the Central Bank of Nigeria said key reforms such as subsidy removal and exchange rate liberalisation were necessary, but warned that poor sequencing and weak fiscal discipline could undermine their benefits.

Sanusi criticised Nigeria’s longstanding dependence on foreign refining, describing it as a structural flaw that persisted while local refining capacity remained underutilised.

“I have always said the subsidy regime was unsustainable. We cannot continue supporting foreign refineries. We’re an oil-producing country. Keeping refineries open abroad while we’re not doing our own,” Sanusi said.

He, however, welcomed recent progress in domestic refining, noting a shift from heavy importation of petroleum products to export activity.

“Today, we have a situation where we have our own domestic refinery. We’re not importing petroleum products. We’re even exporting to Europe, and this is very good for the economy,” he added.

Despite supporting the reforms in principle, Sanusi questioned the timing and broader policy coordination, suggesting that critical measures may not have been implemented in the right order.

He said, “Artificial exchange rates, especially when you’re printing money, cannot work. There was going to be a devaluation.

“For me, removing subsidy or liberalising exchange rates, these are good interventions. Were they done at the right time? Those are certain questions. Were there other things that should be done that have not been done? These are other issues.”

The former apex bank chief argued that implementing exchange rate liberalisation in a loose monetary environment contributed to the naira’s sharp depreciation.

“It’s not enough to say, oh, they removed subsidy. You had to. When you get to a point where 100% of your revenue goes into debt service, you cannot continue. Where is the money going to come from?

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“However, if you decide to remove subsidy and liberalise exchange rates in an environment of very loose monetary conditions, before you have tightened money supply, the Naira drops to a bottomless pit. That was a timing issue.”

Sanusi further challenged the government’s continued borrowing, insisting that savings from subsidy removal should translate into fiscal consolidation rather than increased debt.

His remarks come amid reports that the Federal Government has increased its 2026 borrowing plan by ₦11.31 trillion, pushing total projected borrowing to ₦29.20 trillion.

President Bola Tinubu also recently sought Senate approval for a fresh $516 million loan to finance the Sokoto–Badagry Superhighway project.

“We’ve removed the subsidy. We’re now spending it. What we should not see is fiscal consolidation. You cannot remove wastages and continue borrowing. I’ve said this before. You need to see the benefits.

“If you’re not paying the subsidy and you’ve got the money, why are we still borrowing and borrowing? What are we borrowing for?” Sanusi questioned.

…Says Enugu–China direct flight possible in the near future

The Consul General of the People’s Republic of China in Nigeria, Yan Yuqing, has applauded Governor Peter Mbah’s bold economic vision and investor-friendly policies.

Yuqing described Enugu State as a rising hub of “vitality, livability, and opportunity” with strong prospects for deeper China-Nigeria economic cooperation.

The envoy gave the commendation at Government House, Enugu, where she led a delegation of top executives from leading Chinese companies to a high-level meeting with Mbah.

She said the visit underscored growing bilateral engagement between Nigerian and China, which also spotlighted Enugu’s evolving status as a preferred destination for foreign direct investment, FDI.

The Chinese envoy particularly praised Mbah’s strategic focus on infrastructure, technology, and human capital development, noting that the administration’s blueprint aligns with global best practices and emerging investment trends.

“The governor’s vision for Enugu is both inspiring and practical. His commitment to infrastructure, technology, and human capital development provides a solid foundation for sustainable growth. We are confident that Enugu will become a major destination for Chinese investors.”

This was even as she stated that initial doubts as to possibility of a direct flight from Enugu to China had been cleared, having seen Mbah’s bold vision and efforts in positioning Enugu as an economic and aviation hub.

“So, at that time I thought, a straight flight to China, is it possible? But now, especially after our discussion, I think that it is not a dream. It’s a reality. And maybe in the near future, we can realise it,” she said.

According to the Consul General, the relationship between China and Nigeria has continued to strengthen, especially following the elevation of bilateral ties to a comprehensive strategic partnership in 2024, expressing optimism that Enugu would play a significant role in advancing this cooperation.

She also highlighted the presence of major Chinese corporations in Nigeria and indicated China’s willingness to expand collaboration in key sectors including infrastructure, digital economy, vocational education, and cultural exchange.

Yuqing further revealed that discussions were ongoing regarding possible sister-city agreements between Enugu and select Chinese cities, a development expected to foster closer economic and cultural integration.

She expressed delights at the cleanliness of Enugu city, describing it as quite livable.

Addressing the delegation, Mbah reaffirmed that Enugu remains open and ready for international partnerships, particularly with Chinese investors and airlines.

He emphasised that the state had deliberately created a safe, clean, and business-friendly environment capable of supporting large-scale investments.

“We are open to partnerships with Chinese airlines and investors. Enugu is safe, clean, and business-friendly,” the governor said, adding that ongoing reforms were designed to ensure ease of doing business and long-term returns for investors.

He further disclosed that plans were already underway to establish direct international flight routes between Enugu and major Chinese cities, including Guangzhou, as part of broader efforts to deepen trade and economic exchanges.

“With the concessioning of the Akanu Ibiam International Airport and our plan to build a modern cargo terminal, direct flights from Enugu to China are possible within a shorter time. This will significantly enhance trade, logistics, and investment flows,” Mbah stated.

The governor described the New Enugu Smart City as a flagship initiative aimed at redefining urban living and investment standards in Nigeria.

According to him, the project would feature world-class infrastructure, including underground electricity systems, central sewage networks, fiber-optic connectivity, piped water, and gas pipelines.

In a move to further strengthen cultural and economic ties, Mbah proposed the establishment of a Chinatown District in Enugu, assuring the Chinese delegation of government support, including land allocation and policy backing.

“We expect major Chinese companies to site their headquarters here and operate from Enugu. Our relationship with China is warm and expanding, and we want to deepen it through concrete investments,” he said.

The governor also highlighted ongoing collaboration between Chinese firms and the Nigerian government, particularly the role of CCCC in the construction of Enugu Smart City and the CCECC in rail infrastructure development.

Beyond infrastructure, Mbah pointed to successful industrial partnerships already taking root in the state, citing the example of the Haier Group, which partnered with the Enugu State Government to establish manufacturing facility in Enugufor producing digital devices, solar equipment, and household appliances.

According to him, the partnership goes beyond production to include technology transfer and workforce development, with local technicians being trained to take over operations in the near future.

He assured investors of the government’s readiness to continue to de-risk investments and provide the necessary support to ensure profitability and growth.

Gunmen have killed five people, including a traditional ruler, his wife, son and two others, in Olegabulu community in Agatu Local Government Area of Benue State.

The incident occurred on Thursday night when the assailants stormed the community around 8pm.

A local source from the community told our correspondent that four persons who rode on two motorcycles entered the residence of the traditional ruler and shot him and two members of his family.

The source, who did not want to be named, said, “The assailants were not Fulani because, at the time they alighted from their motorcycles, they exchanged pleasantries with people around in our dialect.

“So, nobody envisaged they were enemies, but as soon as they entered the traditional ruler’s house and opened fire, everyone scampered for safety.

“The assailants operated for almost 20 minutes. After attacking the traditional ruler’s residence, they moved to the next house and killed two people.

“One other person sustained injuries before they fled.”

The Chairman of the local government, Melvin Ejeh, who confirmed the incident in a telephone interview on Friday, said five people were killed and one person was injured, adding that police officers in the area had visited the scene.

“It’s true the incident happened. Five people were killed and one person injured during the attack,” Ejeh said.

When contacted, the state Police Public Relations Officer, DSP Udeme Edet, said she was yet to receive the report.

“I am yet to get the report, but I am still waiting for it,” Edet said.