Oil alone can’t make Nigeria rich, Sanusi says, proffers solutions to economic recovery

Former Governor ofthe Central Bank of Nigeria (CBN) and the 14th Emir of Kano, Sanusi Lamido Sanusi, has given a recipe for Nigeria’s economic growth and recovery.

Sanusi who spoke at the “Distinguished Lecture Series” of the Nigerian Institute of International Affairs (NIIA) in Lagos on Thursday, said that over-dependence on oil alone will not make Nigeria rich.

Speaking on the theme “Resetting the Nigerian Economy for a Brighter Future,” Sanusi said oil production was enough to get Nigeria into trouble but was not capable of making the country rich because, according to him, reduced dependence on petrol will be the long-term solution to the petrol subsidy removal crisis.

“Oil is not enough to make us rich but enough to put us in trouble,” the former CBN Governor said.

“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.

According to the former Emir, an economy is run on the basis of the ideological orientation of those who control the state.

“The long term solution is to reduce dependence on PMS. In the short term, the most effective measure to offset the removal of fuel subsidies is cash transfers,” he noted.

“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.

Read also: El-Rufai, Soludo, Sanusi demand fuel subsidy removal

“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.

“The design of individual cash transfer programmes varies considerably in reach and coverage,” he added.

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