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.

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.

By Yusuf Danjuma Yunusa

Peter Obi, the 2023 presidential candidate of the Labour Party, and other South-East leaders on Monday held a closed-door meeting with former President Goodluck Jonathan in Abuja ahead of the 2027 general election.

The meeting, held at Mr Jonathan’s residence, was attended by several South-East leaders.

Present at the meeting were former Enugu State Governor, Okwesilieze Nwodo; former Imo State Governor, Achike Udenwa; former Managing Director of the Niger Delta Development Commission (NDDC), Onyema Ugochukwu and Senator Victor Umeh, among others.

Mr Obi, who spoke to journalists shortly after the meeting, said they consulted with the former president over the 2027 general elections.

He said Mr Jonathan wished Nigeria well and hoped for free, fair and credible elections in 2027, adding that the country must not become a one-party state.

“He wished that we have free, fair, credible election. That would be his wish. There can’t be one party system. He cannot support such a thing. Nobody can claim to be more of a democrat in this country. In terms of those who have led this country without putting him (Jonathan) as number one,” he said.

He said Mr Jonathan served the country faithfully and is a committed democrat.

On endorsement, he said, “We are not talking about endorsement yet. When I become a candidate, I will come for it. He wishes the country well, and we are here to consult with him.”

“We, some notable South-East leaders have come in consultation to our respected former President Goodluck Jonathan, That’s basically what it is. It is on 2027 elections and it is all about Nigeria.

“We are now seeing him (Jonathan) in the categories we have come to see former President Olusegun Obasanjo, former president Ibrahim Babangida and others, so that is the category we are seeing now.

“They are fathers now. They are not defecting. They are not involved. But we need to consult them, because especially someone like him (Jonathan) who served the country very faithfully, focused, and did what is expected in a democracy in this declining situation,” Mr Obi said.

A chieftain of the All Progressives Congress (APC), Abdulsalam Abdulkarim Zaura, on Monday recounted how he narrowly escaped a mob attack unleashed by suspected thugs along farm center in Kano metropolis.

Zaura, who recently declared his intention to contest the Kano Central Senatorial seat in the 2027 general elections, under the ruling All Progressives Congress (APC), escaped with several of this vehicles damaged and supporters injured.

The ugly incident ensured while the Businessman along side hundreds of his supporters were on their way to Meena event center for the declaration of his senatorial ambition.

Speaking through his media aide, Dahiru Maiwuddadu, Zaura said the a group of suspected hoodlums suddenly unleashed attacked on his convey and vandalised several of his vehicles in the process.

According to him, Zaura escaped unhurt, but the attack left a trail of damage and heightened fear among traders and residents.

He asserted that the same set of thugs subsequently went on rampage to invade the GSM market along farm center creating panic on residents.

While commiserating with the victims of the unfortunate attack on the market, the APC Chieftain applauded the quick intervention of the security agencies for bring the situation under control.

He expressed concern over what he described as rising youth-related violence, stressing the need for urgent action to address the root causes and safeguard lives and property.

Zaura called on security agencies to investigate the incident and bring the perpetrators to justice, warning that such acts could undermine peace and economic activities in the state.

He also urged youths to shun violence and embrace peaceful coexistence, dialogue and lawful means of engagement.

The APC stalwart reaffirmed his commitment to supporting policies and initiatives that promote security and economic stability in Kano Central, noting that traders and small businesses must operate in a safe environment to thrive.

He further assured affected traders of his solidarity, describing them as vital contributors to the state’s economy and calling for collective efforts to prevent future occurrences.

The incident has raised fresh concerns over security around major commercial centres in Kano, especially as political activities intensify ahead of the 2027 general elections.