
News
‘Why are we still borrowing after subsidy removal?’ – Sanusi queries FG
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.
News
ADC: Tinubu, Shettima’s absence leaves Nigeria in constitutional crisis
The African Democratic Congress has described the continued absence of President Bola Ahmed Tinubu, while Vice-President Kashim Shettima is also outside Nigeria, as a dangerous disregard for the Constitution.
The party, in a statement by Mallam Bolaji Abdullahi, the ADC National Publicity Secretary, said that Section 145 of the Constitution requires the President, when proceeding on vacation for a period of up to 21 days, to transmit a written declaration to the President of the Senate and the Speaker of the House of Representatives, after which the Vice-President performs the functions of Acting President.
“President Tinubu left Nigeria on 30 August and has now been away for more than 21 days. We therefore demand to know whether the required declaration was transmitted by the President. If he did not, we would like to know why the National Assembly has ignored Section 145 of the Constitution,” the ADC said.
The opposition party also rejected the Presidency’s explanation that the President was on a “working vacation” or that the Secretary to the Government of the Federation, Senator George Akume, would represent President Tinubu at official events, dismissing it as “an absurdity that raises more questions than it answers.”
“Representing the President at events and ceremonies does not confer constitutional powers. The Secretary to the Government of the Federation is a mere appointee of the President. He may attend events or deliver speeches on the President’s behalf, but he cannot exercise the constitutional powers of the President or Acting President,” the party said.

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Vice President Kashim Shettima is received on arrival in New York by Lagos State Governor Babajide Sanwo-Olu, Minister of Foreign Affairs Ambassador Bianca Odumegwu-Ojukwu, Deputy Chief of Staff to the President (Office of the Vice President) Senator Ibrahim Hassan Hadejia, Minister of Women Affairs Imaan Sulaiman-Ibrahim, Minister of Solid Minerals Development Dele Alake, Nigeria’s Permanent Representative to the UN Ambassador Jimoh Ibrahim, and other officials.
“Representation is not governance. Attendance at official functions is not presidential authority. Nigeria cannot be governed through ceremonial proxies, telephone calls and press statements issued from foreign capitals.”
The party added that the claim that the President has continued to direct national affairs from abroad only “compounds the absurdity”, saying that a so-called “working vacation” does not remove the President’s constitutional obligations under Section 145.
“There is no constitutional category known as a ‘working vacation’. Presidential authority cannot be transferred by convenience, protocol or press statement. Nigeria is a constitutional democracy, not a private enterprise to be managed remotely from a holiday destination.”
The ADC said it was particularly troubling that the President and Vice-President were simultaneously absent while Nigerians confronted worsening insecurity, unemployment and an unbearable cost-of-living crisis.
In a similar vein, the ADC also described as a “national disgrace” the fact that President Emmanuel Macron of France is in New York attending the United Nations General Assembly, while President Tinubu is vacationing in Paris, the capital of France.
“The irony would be amusing if it were not a national disgrace. At a time when world leaders are advancing their countries’ interests at the United Nations General Assembly, Nigeria’s President is holed up in the French capital while his host has left to pursue his own country’s national interest.
“President Tinubu cannot be vacationing in Paris while President Macron is in New York representing France and expect Nigerians to accept that it is okay for their President to continue to hang around in a country after the host has left to attend to more important things. This is not merely poor optics. It is a national embarrassment.”
The party called on the Presidency and the National Assembly to provide a direct answer to one question:
“Who presently exercises the constitutional powers of the President of the Federal Republic of Nigeria, and under what provision of the Constitution?”
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Minister Secures International Investment Commitments for Power Projects
The Federal Government has secured fresh commitments from major Chinese power companies and financial institutions to accelerate critical electricity projects and deepen Chinese investment across Nigeria’s power value chain.
The commitments, which cover generation, transmission, equipment manufacturing, renewable energy and grid digitalisation, followed a high-level Nigeria-China power sector mission to Beijing led by the Minister of Power, Joseph Tegbe.
Tegbe disclosed this in Abuja while presenting his scorecard for his first 100 days in office, saying the government was seeking to move beyond conventional contractor arrangements to partnerships that would bring additional capital, technology and technical expertise into the sector.
Among the companies involved are Sinomach, China Machinery Engineering Corporation (CMEC), China National Electric Engineering Company (CNEEC) and TBEA, alongside Chinese financial institutions.
CMEC has reaffirmed its commitment to the 1.9GW Presidential Power Initiative, with the first transmission lines under the programme expected to be delivered in the first quarter of 2027.

CNEEC, the minister said, is advancing financing of $116 million for the Zungeru power evacuation project, while TBEA has proposed a $500 million industrial park for the local manufacture of power equipment.
The Chinese engagements also cover accelerated development of the East-West Super Grid, the Omotosho-Epe transmission line, cable supply and local assembly, a 300MW distributed renewable-energy programme and waste-to-energy pilot projects.
Tegbe said the government was also working with Huawei on grid digitalisation, Supervisory Control and Data Acquisition (SCADA) systems and technical training.
He said the objective was to ensure that foreign partnerships translated into bankable projects and completed infrastructure capable of delivering measurable improvements to the power system.
The minister’s disclosure comes against the backdrop of the Federal Government’s wider effort to restore financial stability to the electricity market, including the mobilisation of ₦1.23 trillion through two bond issuances to settle verified legacy obligations owed to power generation companies
₦120bn Annual Leakage Blocked
Tegbe also disclosed that interventions along the Ikorodu-Sagamu industrial corridor were expected to block energy theft and related revenue leakages estimated at about ₦120 billion annually.
He said improved billing, collection and remittance remained critical to restoring the financial viability of the electricity market and ensuring that resources generated within the sector were available for continued investment.
The minister said the government was also preparing a new phase of investment in transmission infrastructure, including the proposed Transmission Super Grid and the East-West Grid, while exploring bilateral generation-distribution arrangements to improve the utilisation of existing power assets.
Mambila Project Gets Fresh Impetus
Tegbe said the government’s recent victory in the long-running arbitration over the Mambila hydropower project had removed a major obstacle to the development of the massive scheme in Taraba State.
An International Chamber of Commerce arbitration tribunal in Paris last week rejected claims totalling about $3.38 billion brought against Nigeria by Sunrise Power and Transmission Company in disputes connected with the project.
The minister said the government was now exploring a pragmatic, potentially phased approach to delivering the Mambila project, alongside smaller hydropower schemes that could serve agricultural and industrial corridors.
He identified the next phase of the government’s power programme as one focused on converting agreements and ongoing reforms into bankable projects, additional transmission capacity and infrastructure capable of supporting future electricity demand.
Among the priorities, he said, were the East-West Grid, the Transmission Super Grid, Mambila and small hydropower projects.
Tegbe said the government would also continue to pursue greater private-sector participation in the electricity market, insisting that new generation capacity must be matched by viable demand and infrastructure.
“An inch of improvement is better than a mile of intentions,” he said, quoting Steve Maraboli as he reaffirmed the administration’s commitment to reforming the power sector under President Bola Tinubu’s Renewed Hope Agenda.
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