Kano Emir, Sanusi, warns Buhari on economic pitfalls
Emir of Kano, Alhaji Muhammadu Sanusi II
The Emir of Kano, Alhaji Muhammadu Sanusi II, has warned President Buhari to avoid fiscal missteps that dogged the administration of his predecessor, Jonathan.
He urged the President to beware, persons, he described as ‘voodoo’ economists parading the corridors of power and churning out policies capable of perpetuating poverty.
He said current economic indices hinted there was serious trouble ahead for the polity, unless policies were well articulated to bring the nation out of recession.
Sanusi spoke in Kano at the ongoing 15th meeting of the Joint Planning Board and National Council on Development Planning, organised by the Federal Ministry of Budget and Planning.
“We have found it extremely difficult to attract foreign investment in the country because of our inconsistent policies. No foreign investor would come to the country with the hope of putting money in our economy when he is aware that a court judgment could upturn an agreement at any time.
“Our government must make it a point of duty to respect contractual agreements. We must be transparent and follow a clearly stated and mutual document. Government must give incentives to foreign investors for importation of raw materials and equipment. By so doing, government would create job opportunities and further enhance economic growth,” the former Governor of the Central Bank of Nigeria added.
Sanusi, who blamed terrorism in the North and agitations in the Niger Delta on defective economic policies by successive administrations, called on the Buhari government to minimise faultfinding and face reality.
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5 Comments
Not only has this administration find it difficult to attract foreign investors. Some of the multinational companies are leaving because the economic environment is precarious, eroding investors confidence.
The current administration is playing business as usual and politics with objective Economic realities.
Why is Nigeria is still planning budget based on the ever fluctuating price of oil, what happened to other sector of the economy, Lagos State for example is moving away slowly, but surely from reliance on sharing “Abuja money”
Why do we keep on subsiding Forex, and consumption?
Some of the points raised by HRH Sanusi in speech, and i align include:
FG must set the FX rate to incentivise capital inflows, catalyze FDI & FDI funding.
FG must set interest rates at levels that deter capital flight dollarization.
FG must eliminate wasteful and abuse prone subsidies –
FG must digitize state land registries and streamline relevant legislation.
FG must re-prioritize public spending towards investment in human capital. (This is so critical because more than 52% of the Nigerian population is between the age of 15 and 48. This is the most productive age of an individual, it is an assets to a nation that has them, but could be a liability if they have no skills and they have no job. A radical real change of status quo investment in Infrastructure would create jobs for many people in this age group, and many more from a multiplier effect of massive investment in infrastructure).
The FG has to stop sudden, abrupt policies that impact supplies of Forex, and scare investors – For example the sudden ban of 10 banks just yesterday from selling FOREX is too sudden, what happen to warnings, and giving them a time frame to pay what they owe. These kinds of abrupt and draconian-like leadership sends shock to the market, creating further dis-equilibrium.
A serious look at the current structural set up of the nation is due. One Nigeria, yes, i am in agreement, but more efficiently organized, the center is an ineffective.
Sanitize and strengthen institutions of government.
Protect infant industries specifically labour intensive manufacturing.
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Kano leaders are turning against Buhari.
Not turning against Buhari he is tell him what is expected him to do in order to make thing work properly
HRH has as usual clearly and concisely stated the obvious. We know these things, we know the theories. To implement them is the problem. One question I would ask is that why are we in a constant desperate search for foreign investors. I know we need forex for payments of bills, to improve our balance of payments, to import raw materials, but honestly, Nigerians own factories in South Africa, Ghana, China, properties and investments is assets in the United States, Switzerland, the UK. Granted it is stolen money belonging to the country, but if those loop holes are genuinely plugged can you imagine the internal wealth we could create. However, if the will is not there, things can never get better. After the creation of the subsidy billionaires (the greatest scam that has taken place in Nigeria) we are now creating the Forex billionaires. Our economy is so simple and basic that it does not need a huge team of experts to run it. Dezieani’s tomato seller in Bodija market could probably run it, with all due respect to the present Minister of Finance, who is actually trying to do a good job.. We have one product to sell – petroleum. The income generated from it is supposed to be used to develop infrastructure, health and education, thereby creating an enabling environment for development of the people. What could be simpler that that. We don’t have a high powered financial economy like Singapore or the UK, where a negative stock price in one product in Colombia can have an impact on the financial markets. We don’t even have a commodities exchange, where prices of commodities rise and fall with market demand. We have a simple, primitive economy, but to enable those in power steal it all, we create all sorts of ruses, not even complicated ones at that, to get our share of the national cake, the all you can eat 24/7 buffet That is Nigeria, God help her.. All the problems in the North east and the South south are directly caused by this. Until there is proper accountability, nothing will change. We learnt in Jurisprudence, that all men are criminals. It is fear of the consequences that stops us. God gave us this wonderful, abundant,. beautiful country. I hope we wont kill it. Mr. President cannot fix the ills of the past overnight. He can build the bones for tomorrow, but if accountability and consequence is not entrenched into our psyche as a people, no amount of planning or budgeting will get us out of this abyss that we have sunk into. Please listen to people like the Emir. He has great common sense, which is a misnomer, because common sense is certainly not common, but we need an excess of it right now.,
We will review and take appropriate action.