Sanusi: Jonathan suspended fuel subsidy removal over Boko Haram threats

Sanusi: Jonathan suspended fuel subsidy removal over Boko Haram threats

The Emir of Kano, Muhammadu Sanusi II, has revealed that former President Goodluck Jonathan’s decision to suspend the removal of fuel subsidy in 2012 was driven by fears of Boko Haram suicide bombings targeting protesters, rather than pressure from street demonstrations.

Sanusi, who was the Governor of the Central Bank of Nigeria at the time, made the disclosure on Tuesday while speaking at the Oxford Global Think Tank Leadership Conference themed “Better Leader for a Better Nigeria.”

He described the fuel subsidy regime as a “naked hedge” that exposed Nigeria to unsustainable financial liabilities, noting that the Federal Government was absorbing all costs regardless of fluctuations in global oil prices, exchange rates, or interest rates.

“If you look at the template, all of those amounts were being absorbed. The Federal Government was saying I have an unlimited pocket,” Sanusi said.

He explained that the country moved from using revenue to pay subsidies, to borrowing funds for the same purpose, and eventually borrowing to pay interest on those loans—leading to bankruptcy.

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“Anyone who takes a naked hedge ends up being bankrupted, especially with a commodity where you don’t control the price,” he added.

Sanusi argued that Nigeria’s current economic challenges could have been mitigated if the subsidy had been removed in 2011, as initially proposed.

“There would have been pain, but that pain would have been a very, very tiny fraction of what we are facing today,” he said.

He recalled that the Central Bank had projected a modest rise in inflation from 11 to 13 percent if the subsidy was removed, and he had personally endorsed the move.

The Emir disclosed that Jonathan’s decision to compromise and implement only a partial removal was due to serious security concerns, particularly the threat of Boko Haram attacks on mass protests.

“If one suicide bomber had attacked protesters in Lagos, Kano, or Kaduna, and 200 people died, it would have gone beyond subsidy,” Sanusi said. “So I give President Jonathan credit. He was determined to do it.”

Despite the suspension of the policy, Sanusi commended Jonathan’s courage in pursuing the reforms under difficult circumstances.

He also used the platform to criticise Nigeria’s political elite, lamenting the erosion of integrity in public office.

“By the time you become a governor, you should be beyond looking for money. But many live like illiterates despite their education,” he said.

Sanusi: Jonathan suspended fuel subsidy removal over Boko Haram threats