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Subsidy Gone, Hardship Remains: Economist Blames Policy Missteps, Debt Burden for Nigeria’s Deepening Crisis Amid Tinubu’s Borrowing

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By Yusuf Danjuma Yunusa

Amidst growing public discontent over persistent economic hardship and the Federal Government’s continued reliance on borrowing, former Central Bank Governor and current Emir of Kano, Sanusi Lamido Sanusi, recently questioned the logic behind President Bola Tinubu’s borrowing spree despite the removal of the long-criticised fuel subsidy.

In an exclusive interview with our correspondent, a prominent economist and financial analyst at a reputable establishment, AbdulWahab Olalekan, dissected the paradox, arguing that the administration’s promises to “stop the hemorrhaging” have yet to materialise because the wound has only been relocated.

When asked whether this economic dislocation is driven by global forces or local mismanagement, Olalekan did not mince words. He attributed the severity of the current hardship primarily to “local structural deficiencies and poor policy sequencing”—specifically the twin shocks of subsidy removal and foreign exchange (FX) liberalisation.

“The relocation of this hardship is primarily the result of local structural deficiencies and policy sequencing (FX liberalisation shock following subsidy removal), though it has been heavily compounded by global economic headwinds,” Olalekan said.

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He stressed that most economists agree the removal of the subsidy was a long-overdue necessity. However, the problem, he explained, lies in the “blunt execution of the transition.” He pointed to two critical domestic failures: the absence of effective social safety net programmes to cushion the blow for ordinary Nigerians, and the country’s “huge debt servicing blackhole” which has swallowed much of the revenue that should have trickled down to the populace.

“The severity of the current hardship is less about the removal of the subsidy itself… and more about the underlying fragility of the Nigerian economy and the blunt execution of the transition. Notably, failure to provide effective social safety net programmes to cushion impact and the fact that the country’s huge debt servicing blackhole sucked some of the subsidy revenue that should typically have trickled down to the average Nigerian,” he explained.

But while local dynamics set the stage, the economist acknowledged that global macroeconomic forces have acted as a devastating multiplier. He noted that the current high global interest rate environment has forced emerging markets like Nigeria to borrow at an expensive premium, further worsening the fiscal picture. Additionally, sticky global inflation has directly fed into Nigeria’s import-dependent economy, accelerating imported inflation.

“The high global interest rate environment meant that countries in the emerging and frontier markets like Nigeria had to borrow at an expensive premium further exacerbating our fiscal picture while the stickiness of global inflation meant increased imported inflation since we are largely an import-dependent nation,” Olalekan stated.

He, however, offered a sliver of relief, observing that the inflation trajectory would have been even worse were it not for the operationalisation of the Dangote Refinery and certain reforms introduced by the Central Bank of Nigeria (CBN).

“Thanks to the Dangote Refinery and some of the CBN reforms, the inflation situation could have been worse,” he concluded.

As the Tinubu administration continues to defend its borrowing plan in the face of mounting scrutiny, Olalekan’s diagnosis suggests that without fixing domestic structural flaws and providing tangible relief, removing the subsidy alone will remain a repositioning of pain rather than a cure.

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NISO Announces Power Outage in Kano, Jigawa, Katsina for Grid Maintenance

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By Yusuf Danjuma Yunusa

The Nigerian Independent System Operator (NISO) has announced a planned power interruption affecting Kano, Jigawa, and Katsina states this Sunday, from 9:00 a.m. to 1:00 p.m.

In a statement posted via its X handle, NISO explained that the temporary outage is necessary to facilitate essential maintenance at the 330kV Kumbotso Substation, to be carried out by the Transmission Company of Nigeria (TCN).

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Describing the upgrade as a critical investment, the system operator noted that the exercise would strengthen the national grid, enhance transmission capacity, and improve the overall resilience of Nigeria’s power system—ultimately leading to better electricity supply for customers in the affected region.

NISO expressed regret over the inconvenience and appealed for patience, understanding, and cooperation from members of the public during the maintenance period.

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DSS Releases Detained Farmer, Awards N3 Million Compensation After Review Clears Him of Terror Links

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By Yusuf Danjuma Yunusa

The Director-General of the Department of State Services (DSS), Oluwatosin Adeola Ajayi, has ordered the immediate release and compensation of a man who had been wrongfully detained on suspicion of ties to Boko Haram.

Nura Idris, a farmer and livestock rearer from Soba Local Government Area in Kaduna State, was released following a comprehensive review by a DSS investigation panel that found no evidence to support the allegations against him.

In addition to ordering his release, the DSS Director-General approved a compensation package of N3 million to assist Idris with his immediate needs and pledged further support to help him rebuild his business.

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According to a security source, Idris was initially arrested in June 2024 in Suleja, Niger State, by a sister security agency over alleged links to terrorists. He was subsequently transferred to DSS custody, where the case underwent a full review.

Receiving the compensation, Idris expressed gratitude to the DSS leadership. “I thank the DGSS for his kindness. I was well treated in DSS custody and I pray that Allah rewards the DGSS immensely,” he was quoted as saying.

His father, Yusuf Idris, who received him upon his release, also thanked the DSS Director-General for his compassion and generosity, assuring that the compensation would be put to good use.

Another security source disclosed that in similar cases, the DSS routinely provides psychological and medical support to released detainees and assists them in establishing businesses to facilitate their reintegration into society.

The release of Idris is part of a broader internal review exercise initiated by the Service last year. The initiative aims to reassess inherited and prolonged detention cases to ensure that individuals held without sufficient evidence are not left in custody.

“The Service under the current DG has continued to show that safeguarding national security must go hand in hand with upholding the rights and dignity of citizens,” the source said.

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Army Approves Strategic Redeployment, Names New GOCs for 3 and 6 Divisions

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By Yusuf Danjuma Yunusa

The Nigerian Army has announced a major reshuffle of its senior officers, with changes affecting key operational, command, training and staff appointments.

According to a statement issued on Saturday by the Acting Director of Army Public Relations, Colonel Appolonia Anele, the reshuffle is part of efforts to strengthen national security and improve operational effectiveness across the country.

The statement added that the postings affected field commanders, school commandants and principal staff officers at the Army Headquarters.

It noted that the Chief of Army Staff, Lieutenant General Waidi Shaibu, approved the strategic redeployment of senior officers, saying the move was aimed at enhancing the Army’s capacity to address emerging security challenges.

Under the new appointments, Major General WM Dangana has been named the General Officer Commanding (GOC) 3 Division Nigerian Army and Commander of Joint Task Force Operation ENDURING PEACE, replacing Major General EF Oyinlola.

Similarly, Major General EI Okoro has been appointed GOC 6 Division Nigerian Army and Land Component Commander of Joint Task Force South-South Operation DELTA SAFE, succeeding Major General EE Emeka.

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The statement also announced the appointment of Major General JR Lar as Commander, Army Headquarters Garrison, while Brigadier General OM Oyekola will serve as Acting Military Secretary (Army). Brigadier General I Waziri retains his position as Chief of Staff in the Office of the Chief of Army Staff.

As part of efforts to strengthen operational leadership and combat readiness, Brigadier General IB Buhari was appointed Commander of Headquarters 63 Brigade, while Brigadier General K Rabiu was named Commander of Headquarters 31 Artillery Brigade.

In a move reflecting the Army’s growing emphasis on technology and emerging security threats, Major General SA Emmanuel was appointed Commander of the Nigerian Army Space Command.

The statement noted that the appointment “reinforces the Army’s growing focus on emerging domains of warfare and technology-driven security operations.”

Major General O Adegbe was also appointed Director of Intelligence and Security at Defence Headquarters.

In the area of military education and institutional development, Major General KE Chigbu was appointed Deputy Commandant of the National Defence College, while Major General SD Makolo became Commandant of the Nigerian Army Armour School.

Other appointments include Major General SO Adejimi as Commandant of the Nigerian Army School of Supply and Transport and Major General FS Etim as Chief of Training at the Headquarters Training and Doctrine Command, Nigerian Army (TRADOC).

Brigadier General U Ahmad has also been appointed Commandant of Depot Nigerian Army, Zaria.

The reshuffle further saw Major General KO Ukandu appointed Managing Director and Chief Executive Officer of Post Housing Development Limited, while Major General AI Allison was named Managing Director of Defence Properties Limited.

The statement added, “The COAS charged the newly appointed senior officers to justify the confidence reposed in them by demonstrating exemplary leadership, professionalism, innovation and unwavering commitment to the Nigerian Army’s constitutional mandate of defending Nigeria’s sovereignty, protecting its territorial integrity and supporting civil authority in maintaining peace and security across the nation.

“The Nigerian Army remains resolute in its transformation drive and commitment to building a highly professional, combat-ready and people-oriented force capable of effectively addressing contemporary and future security challenges in pursuit of Nigeria’s national security objectives.”

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