Jonathan Suspended Subsidy Removal Over Fear of Boko Haram Attacks – Sanusi
Emir of Kano, Muhammadu Sanusi II, has revealed that former President Goodluck Jonathan shelved plans to remove petrol subsidy in 2012 over concerns that Boko Haram insurgents could exploit the situation to attack protesters.
The former Central Bank of Nigeria (CBN) governor made the disclosure on Tuesday while speaking at the Oxford Global Think Tank Leadership Conference themed ‘Better Leader for a Better Nigeria’.
Sanusi explained that the nationwide protest against subsidy removal, which paralysed economic activities for nearly two weeks, made the Jonathan administration reconsider its decision due to rising security threats.
He said the policy was misunderstood and poorly implemented during Jonathan’s tenure, describing Nigeria’s subsidy system as a “naked hedge” where the federal government guaranteed a fixed pump price irrespective of global oil prices, exchange rates, or interest rates.
According to him, the structure pushed the government into heavy borrowing, not only to fund the subsidy but also to service the loans taken for it.
“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.
“So we moved from a point where we were using revenues to pay subsidies, to where we had to borrow money to pay subsidies, and then borrow money to pay interest on those loans. We had become bankrupt.”
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
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