Former Emir of Kano and ex-Governor of the Central Bank of Nigeria (CBN), Lamido Sanusi, has proposed a long-term solution to the petrol subsidy removal crisis, emphasising the need to reduce dependence on petrol.
Speaking at the Distinguished Lecture Series organised by the Nigerian Institute of International Affairs (NIIA) in Lagos Sanusi stressed that while short-term measures like cash transfers could help offset the impact of subsidy removal, the ultimate solution lies in decreasing reliance on Premium Motor Spirit (PMS).
The lecture, themed “Resetting the Nigerian Economy for a Brighter Future,” aimed to address economic challenges in Nigeria and offer practical solutions.
He highlighted the importance of enhancing public understanding of the economy, noting that many Nigerians lack this knowledge. He emphasised the need to incorporate economics into public discourse and recognise the central role of politics in economic matters.
According to Mr Sanusi, an economy is run on the basis of the ideological orientation of those who control the state. “If the state is a rentier state where the people in control see it an avenue to make money for themselves and their families, they are never going to run an economy in a manner that encourages production and growth.
“If it is run by people who are thinking long-term and of the legacy they will leave behind for their children and the future of the country, they will run different sets of different policies. “I think every economist knows that multiple exchange rates are a problem, but as long as politicians are able to give themselves a dollar at 400 Naira and sell at 700 Naira, they are not ready to listen to the economists,” he said.
The former CBN governor noted that Nigerians had been talking about fuel subsidies as far back as 2011. “We said, if we did not do something about those subsidies, we would end up where we are today.”
Lamido Sanusi expressed his view that civil society should shoulder more blame than politicians for the current economic situation in the country. He emphasised that governing the economy is a critical aspect to consider in the process of resetting the economy.
Sanusi highlighted the importance of breaking away from repetitive approaches, noting that expecting different results from the same actions is not realistic. Concerning Nigeria’s Gross Domestic Product (GDP) and debt ratio, he pointed out that the country faces a substantial revenue challenge and stressed the need to increase revenue.
Furthermore, he emphasised the importance of enhancing the country’s image to make it an attractive destination for investments.
“Oil is not enough to make us rich but enough to put us in trouble. “Nigeria will never get rich from producing oil.
“At best, it represents working capital that can enable the launch of other industries. “Nigeria produces just 2.3 barrels per person per year compared to Saudi Arabia’s 91.4, Kuwait’s 221.6 and Gabon’s 31.7,” he said.
