Sanusi urges Nigeria to diversify its economy, reduce petrol consumption

Former Kano emir Muhammadu Sanusi II has said that the ultimate solution to the crisis caused by the removal of petrol subsidy is to reduce the reliance on petrol.

He made this remark on Thursday, at a lecture series organised by the Nigerian Institute of International Affairs (NIIA) in Lagos.

Sanusi, who was also a former CBN governor, recalled that Nigerians had been debating the issue of petrol subsidy removal since 2011.

“We warned that if we did not address those subsidies, we would end up where we are today,” he said.

He said that in the short term, the most effective way to cushion the impact of the subsidy removal is to provide cash transfers to the people.

“Cash transfer programmes can vary significantly in their scope and coverage,” he said.

“The long-term solution is to reduce dependence on PMS.”

Sanusi also said that oil is not a sufficient source of wealth for the country, but rather “a source of trouble”.

He said “Nigeria will never get rich from producing oil”.

He added that oil is only a means of capital that can enable the development of other sectors.

“Nigeria produces only 2.3 barrels per person per year compared to Saudi Arabia’s 91.4, Kuwait’s 221.6 and Gabon’s 31.7.”

Sanusi stressed the need to bring economics into public discourse and to run the economy based on the vision of those who govern the state.

“If the state is a rent-seeking state where those in charge see it as a way to enrich themselves and their families, they will never run an economy in a way that promotes production and growth,” he said.

“If it is run by people who think long-term and of the legacy they will leave behind for their children and the future of the country, they will implement different policies.

“Every economist knows that multiple exchange rates are a problem, but as long as politicians can get a dollar at 400 Naira and sell at 700 Naira, they are not ready to listen to the economists.”

Sanusi said that the country needs to change its approach if it wants to achieve different results.

He also said that the country has a serious revenue problem and that one of the ways to solve it is to increase revenue generation.

He advised that the country should improve its image to attract more investments.