Muhammadu Sanusi II, the former Emir of Kano, has asserted that the administration led by former President Muhammadu Buhari was responsible for the deterioration of Nigeria’s economy.

In a recent video message addressed to Nigerians, Sanusi stated that the preceding administration mishandled the economy by neglecting expert advice, thereby making the country’s treasury vulnerable to exploitation and pushing the economy into a state of crisis.

The former CBN governor, who is known for being critical of the government’s policies, was bold in calling out Buhari’s administration in the past.

He said in 2022: “We were in a deep hole in 2015. And between 2015 and now, we have been digging ourselves into a deeper hole. We thought we had a big problem in 2015. 2015 is nothing compared to what will happen in 2023.”

The former Emir of Kano, who was deposed by former governor of Kano State, Umar Ganduje for being critical of his government, said Buhari’s administration created room for some sycophants to exploit the system.

He indicated that Nigeria led a false life in the past eight years that was maintained by borrowing, which eventually crippled the economy.

Sanusi noted that the present administration, led by Bola Tinubu, has no choice but to remove the fuel subsidy, as the government can no longer afford to pay. He said debt service exceeded 100% and if the CBN should print more money, in addition to the N30tn it has printed and loaned to the government, the naira will fall to N1500 per dollar. This, he said, has left tax as a viable way for the government to generate revenue.

His statement below:

“The last eight years, Nigeria led a false life, the government borrowed from within and without. About N30 trillion was borrowed from the Central Bank.

“All the revenue the country generated in the last few years couldn’t service debt. Debt service exceeded 100 percent. The government borrowed to service debts. No country can grow this way. The time will come when one cannot borrow anymore. Additionally, there will be nothing to pay debts.

“Those writing, demanding that we speak on the current situation in the country; this is not the right time for me to speak. It was like a driver on the road driving recklessly despite a wise counsel telling him of a crater ahead. What will you tell after plunging the car into the hole?

“People refused to listen to us then. We will only now advise them to be patient. I will never say Tinubu has pushed Nigeria into difficulty. I am not saying he is flawless or flawed. We will speak when he goes astray. The government can’t pay subsidies since it doesn’t have the means.

“If they add tax, we have to pay since borrowing is impossible. If the CBN printed more naira, the dollar would jack up to N1,500. We must suffer. When I was the CBN governor it was N150. Today it’s somewhere around N900.

“They treated the economy the way they wanted and refused to listen to experts. In the last eight years, only sycophancy succeeded. The sycophants bought dollars at N400 and sold N540. An inexperienced boy who had never worked anywhere owns a private jet.”

The record stock market boom in Nigeria is super-amazing: “Last Tuesday (August 29, 20223), the Nigerian Exchange Limited (NGX) witnessed a historic moment as its All-Share Index (ASI) reached a new all-time high of 66,490.34 points, surpassing the previous record of 66,371.20 points that was set on March 5, 2008.

The ASI, which measures the performance of all listed equities on the NGX, rose by 0.51% from 66,151.38 points on Monday, reflecting the bullish sentiment that has dominated the market in recent months.

This remarkable feat was not a fluke or a coincidence, but the result of a series of factors that converged over the last year to create a favourable environment for the capital market.”

My Response:

It is indeed an irony. In the season Nigerian investors recorded these new heights, most Nigerians are leaving the country: ‘“In the first half of the year [2023], we [the UK] granted approximately 132,000 visas, and those are all sorts of visas, which include visit, work and study visas.”‘…to Nigerians. How do you reconcile a season of stock market boom with one where young people seem hopeless? As we discussed during the Investment Course, banks will break all known “profit” records due to the Naira float as they book what they “bought” at N415 to N750 per USD. 

Wow – Nigerians are really going to the United Kingdom: “In the first half of the year, we granted approximately 132,000 visas, and those are all sorts of visas, which include visit, work and study visas. “In the previous full year before that, we issued about 324,000. The UK, in that year, issued about three million visas, and of those three million visas, 324,000 were issued to Nigerians, which is about 10 per cent.”

And that is what is happening. Most of the profits are on currency/FX with minimal growth in lending to manufacturers and other critical players in the economy. Nigeria has always been like this: somehow people will continue to make tons of money even as many struggle. Electricity generating companies are declaring HUGE profits when DISCOS (distributing companies) are going bankrupt or being bought out (Abuja, KD, etc).

How is that possible? You can generate 10 units of energy and be paid for it even if DISCOs can only absorb 3 units to distribute to customers.  So, you see record profits for GENCOs in cities with no electricity. Legendary!

Indeed, we have a lot of work ahead in the nation and part of it will involve creating an economy which works for ALL. The investment dividends will start coming for many of us, and that will also be a reminder that in this season of boom for a very few, many citizens are under stress.  This is not being against the rich, rather, it is a call for an economic system that is fair for all, anchored on shared prosperity for the rise of all.

Comment on Feed

I think you captured this well especially your last sentence. We need to build a system that is fair to all and can support the rise of all. And then leave it to the individuals to determine their paths.

Do this and Nigeria would flourish beyond borders.

This brings be to the attached image. Nigeria is projected to be the 5th largest economy by 2075 at about USD 13 trillion.

Now, the fact that we made it that up the list means that some folks trust that we have what it takes to get there.. There are many things wrong with this projection but I won’t go into that here.

Just wanted to share that if we are to even get close to that, a lot of work is needed. Population growth alone wont cut it.