The Emir of Kano, Alhaji Muhammadu Sanusi II, has revealed that the Goodluck Jonathan administration abandoned its 2012 plan to remove fuel subsidies due to fears that Boko Haram terrorists could exploit the nationwide protests that followed the announcement.
Speaking at the Oxford Global Think Tank Leadership Conference, Sanusi who served as Central Bank of Nigeria (CBN) governor at the time, explained that the administration was concerned about the risk of mass casualties if extremists targeted the protesters.
According to Sanusi, the government initially intended to eliminate fuel subsidies completely but opted for a 50% reduction after assessing the potential security fallout.
“The only reason the government compromised and did 50%, not 100%, was Boko Haram. Because there are were thousands of Nigerians on the streets in Lagos, Kano, and Kaduna. We had suicide bombers in the country,” he said. “If one day one of these bombers had gone to those crowds and exploded a bomb, killing 200 people, it would no longer be about subsidy. So I give President Jonathan credit — he was determined to do it.”
Sanusi criticised Nigeria’s fuel subsidy system, describing it as a “naked hedge”, a flawed and unsustainable economic mechanism that bankrupted the country.
“It was not a subsidy; it was a hedge,” he said. “The government told Nigerians they would not pay more than a fixed amount per litre, regardless of global oil prices or exchange rates. When prices rose from $40 to $140 per barrel, the federal government paid the difference. When the exchange rate doubled, the government paid again. Eventually, we went from using revenue to pay subsidies, to borrowing money to pay subsidies, to borrowing money to pay interest on the borrowed money.”
The Emir argued that if Nigerians had allowed the Jonathan government to proceed with the full removal of fuel subsidies in 2011–2012, the economic pain would have been far less severe than the current hardship.
“If Nigerians had allowed it, inflation would have moved from 11% to 13%. I said we could bring it down later. That small pain would have saved us from today’s crisis,” he added.
Sanusi also used the platform to deliver a scathing critique of Nigeria’s political leadership, describing the country as a “classless society” where education and integrity often fail to translate into effective governance.
“If you take 109 Nigerians at random and put them in the Senate chambers, the results may not be different,” he said. “We have highly educated people in government who behave like illiterates. They forget their education once in power.”
He lamented the culture of praise-singing and corruption among public officials.
“Why would a man who is educated and accomplished become a praise singer? Why can’t he tell his boss the truth? By the time you become a governor, you should be beyond looking for money. You have the opportunity to impact millions of lives — to build schools, provide healthcare, and save lives — yet some leaders are only thinking about houses and wealth. Are you that cheap?”
Sanusi’s remarks revisited one of Nigeria’s most controversial economic moments, the 2012 Occupy Nigeria protests, which forced the Jonathan administration to reverse its plan to fully remove fuel subsidies after nationwide demonstrations paralysed the country.