Jonathan Halted Fuel Subsidy Removal Over Boko Haram Threats, Not Protests — Sanusi
The Emir of Kano, Muhammadu Sanusi II, has revealed that former President Goodluck Jonathan’s decision to halt the removal of fuel subsidy in 2012 was driven by security concerns over potential Boko Haram suicide bomb attacks on protesters, rather than public pressure from demonstrations.
Sanusi, who was the Governor of the Central Bank of Nigeria at the time and a vocal proponent of ending the subsidy regime, said the policy was widely misunderstood and poorly implemented.
Speaking on Tuesday at the Oxford Global Think Tank Leadership Conference, themed “Better Leader for a Better Nigeria,” the Emir explained that what was termed a fuel subsidy in Nigeria functioned more like a “naked hedge,” exposing the nation to heavy financial risks.
He noted that the arrangement compelled the Federal Government to shoulder the entire cost of stabilizing fuel prices, regardless of fluctuations in global oil prices, exchange rates, or interest rates.
He said, “If you look at the template, all of those amounts were being absorbed. The Federal Government was saying I have an unlimited pocket.
“So move from a point where we were using revenues to pay subsidies to where we had to borrow money to pay subsidies, to where we had to borrow money to pay interest on the borrowed money, we had become bankrupt.
“Anyone who takes a naked hedge ends up being bankrupted, especially with a commodity where you don’t control the price.”
Sanusi further stated that Nigeria’s current economic difficulties could have been less severe if Jonathan’s administration had gone ahead with the subsidy removal in 2011.
He said, “If Nigerians had allowed the Jonathan government to remove the subsidy in 2011, there would have been pain.
“But that pain would have been a very, very tiny fraction of what we are facing today. This is the cost of today.
“At that time, we worked out the numbers in the Central Bank, and I stood up and put my credit in front of the line and said, ‘Remove the subsidy today; inflation moves up from 11 percent to 13 percent. I will bring it down a bit later.’ Oh, that’s about 30-something per cent inflation. That was where we were.”
The Emir revealed that Jonathan’s eventual decision to partially suspend the subsidy removal was due to serious security concerns about possible Boko Haram attacks.
He said, “And it was like, if one day one of these suicide bombers goes to these Nigerians and explodes the bomb, and you have 200 corpses, it will no longer be about subsidy. So I got to give President Jonathan the credit. He was determined to do it.
“The only reason the government compromised and did 50 percent, not 100 percent, was Boko Haram.
“If one suicide bomber had attacked protesters in Lagos, Kano, or Kaduna, and 200 people died, it would have gone beyond subsidy.”
10/29/2025, 8:41:53 AM