Nigeria’s economic hardship is a result of the country’s failure to remove fuel subsidies over a decade ago, according to former Central Bank of Nigeria Governor and Emir of Kano, Sanusi Lamido Sanusi. Speaking at the Oxford Global Think Tank Leadership Conference, Sanusi stated that the administration of former President Goodluck Jonathan had the opportunity to end the subsidy in 2011, which would have avoided the current severe inflation and economic distress.

Sanusi, who served as CBN Governor from 2009 to 2014, explained that the Central Bank had assessed the likely impact of removing the fuel subsidy and concluded that inflation would not have exceeded 30 percent if the policy had been implemented earlier. He noted that the decision to compromise on the subsidy was influenced by security concerns during the Boko Haram insurgency, which led to thousands of Nigerians protesting on the streets.

The former CBN governor commended Jonathan’s determination to implement the reform, despite the compromise that was made to save Nigerian lives. Sanusi’s comments come after President Bola Tinubu announced the end of Nigeria’s decades-old fuel subsidy in his inaugural address on May 29, 2023, as part of a bold economic reform agenda.

The removal of the subsidy, which was introduced in the 1970s to keep fuel affordable, has led to sharp increases in petrol prices, transportation costs, and food prices, deepening the cost-of-living crisis. While critics argue that the policy has intensified economic hardship, supporters believe it was a necessary step towards restoring fiscal balance and achieving long-term growth.

Sanusi’s statement highlights the significance of the fuel subsidy removal and its impact on Nigeria’s economy. The country’s experience serves as a lesson in the importance of timely economic reforms and the potential consequences of delaying such decisions. As Nigeria continues to navigate its economic challenges, the removal of the fuel subsidy remains a crucial step towards achieving economic stability and growth.