Emmanuel OchayiFormer Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi, has warned about the dangers of Nigeria’s sole dependence on oil, stating that “Oil is not enough to make us rich but enough to put us in trouble.”
Sanusi, who spoke at the Nigerian Institute of International Affairs (NIIA) Distinguished Lecture Series, drew comparisons with countries like Saudi Arabia and Kuwait, which produce significantly more oil per person.
He commended President Tinubu for removing subsidies and unifying the exchange rate, measures he believes will stimulate economic growth. He warned against the pitfalls of being a “rentier state” and called for a long-term strategy focused on diversifying the economy to ensure prosperity.
“If the state is a rentier state where the people in control see it as an avenue to make money for themselves and their families, they are never going to run an economy 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”
Short-term solutions like cash transfers can cushion the effects of reforms, but a sustainable future lies in reducing dependence on oil.
“In the short term, the most effective measure to offset the removal of fuel subsidies is cash transfers. The design of individual cash transfer programmes varies considerably in reach and coverage. The long-term solution is to reduce dependence on PMS,” Sanusi added
Professor Eghosa Osaghae, Director-General of NIIA, expressed optimism about Nigeria’s potential, describing it as a nation blessed with abundant resources and the largest democracy in Africa. He affirmed the country’s ability to overcome its challenges and lead others toward a brighter future.
“We have continually proven to be the giant, and we must lead others there,” Osaghae said
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