The Emir of Kano, Muhammadu Sanusi II, has revealed that former President Goodluck Jonathan’s decision to suspend the full removal of fuel subsidy in 2012 was influenced by fears of Boko Haram’s suicide bombings on protesters rather than public demonstrations themselves.
Speaking at the Oxford Global Think Tank Leadership Conference themed “Better Leader for a Better Nigeria,” Sanusi, who was then the Governor of the Central Bank of Nigeria (CBN), explained that the Jonathan administration backed down from a total subsidy removal due to security concerns at the height of insurgent attacks.
“The only reason the government compromised and did 50% instead of 100% was Boko Haram,” Sanusi said. “There were thousands of Nigerians protesting across Lagos, Kano, and Kaduna, and the fear was that a suicide bomber could strike the crowd. If that had happened, it would no longer have been about subsidy.”
The former CBN governor, a strong advocate of subsidy removal, clarified that what Nigeria operated at the time was not a “subsidy” but a “naked hedge,” which he described as a risky and unsustainable financial policy.
“It was not a subsidy; it was a hedge. The government said Nigerians would not pay more than a fixed amount per litre, regardless of global oil prices or exchange rates. When prices rose, the government paid the difference — even borrowing to do so. It became financially ruinous,” he explained.
Sanusi argued that had the policy been removed in 2011, the country would have experienced temporary pain but avoided the severe economic consequences currently being felt. “At that time, we calculated inflation would rise only slightly — from 11% to about 13% — before stabilizing. But delaying the inevitable made things worse,” he said.
The Emir also used the platform to criticize Nigeria’s political class for lacking values and accountability, describing the country as “a classless society where leaders live without principle.” He lamented that many educated politicians act “like illiterates” and surround themselves with sycophants.
“When you become a governor or senator, you should be beyond looking for money. You’re meant to serve millions, not enrich yourself,” he said. “We need a ruling class with values beyond material gain.”
In his remarks, renowned banker and founder of Stanbic IBTC, Mr. Atedo Peterside, condemned the culture of corruption among political elites, describing it as “state capture.” He noted that while subsidy removal and exchange rate reforms were necessary, their impact depends on how government uses the increased revenue.
“What’s the point of giving more revenue to thieves?” Peterside asked. “The true test is how that revenue is spent — whether on real development or on frivolous luxury.”
He credited the current administration for removing the subsidy but urged consistency and integrity in implementing economic reforms.
Convener of the conference and former NSE Director-General, Arunma Oteh, emphasized the need for long-term investment and patient capital to boost infrastructure and industrial growth. She called for decentralization of resource control to enable states to harness mineral resources independently.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, also addressed the forum, highlighting ongoing efforts to cushion the impact of reforms through direct cash transfers to 15 million households.
Edun said President Bola Tinubu’s economic reforms aim to stabilize growth, reduce inflation, and improve citizens’ living conditions. “The statistics show progress, but the real focus is on improving daily life — food, transport, and livelihoods,” he said.
The conference brought together leading policymakers, economists, and development experts to discuss strategies for rebuilding Nigeria’s economy and promoting ethical leadership.
