Subsidies will bankrupt Nigeria, Emir Sanusi warns

The Emir of Kano, Sanusi Lamido Sanusi, on Tuesday, has warned that Nigeria may soon witness the worst case of insolvency unless the Federal Government eliminates the huge resources being spent on the subsidy of petroleum and other commodities.

Sanusi raised this alarm at the 3rd National Treasury Workshop, organised by Office of the Accountant General of the Federation, holding in Kano.

Though Nigeria’s debt profile is at N24.4 trillion, a sharp 12.25 per cent increase from the 2017 status, the Accountant General of Federation, Idris Ahmed maintained the nation’s debt profile is sustainable. Sanusi, who conversely opined, insisted the country’s balance sheet is already overstretched to justify Idris’ viewpoint.

The former governor of Central Bank of Nigeria (CBN) worried over the Federal Government spending 70 per cent of the total generated revenue on the nation’s debt service. He insisted that no nation survives in an economy where expenditure on basic social infrastructure depends on 30 per cent of its total income.

The monarch said President Muhammadu Buhari’s promise to lead millions of Nigeria out of poverty can only be realistic if the commonwealth being drained on petroleum and electricity subsidies are diverted on education, health and infrastructure.

Details later.