“Oil is not enough to make us wealthy, but it is enough to get us into trouble.” At best, it represents working capital that can be used to start new businesses.
“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 added.
He argued that reducing people’s reliance on petrol will be the long-term solution to the country’s subsidy removal crisis.
“Cash transfers are the most effective short-term measure to offset the elimination of fuel subsidies.”
“The reach and coverage of individual cash transfer programmes vary greatly.”
“The long term solution is to reduce dependence on PMS.”
Sanusi, a former governor of the Central Bank of Nigeria, added that Nigerians must recognise the importance of the economy as a whole.
He went on to say that bringing economics into public discourse would be critical in resetting the Nigerian economy.
He also emphasised the importance of recognising politics’ primacy in economic matters.
According to Sanusi, an economy is run based on the ideological orientation of those in power.
“If the state is a rentier state, where those in power see it as a way to make money for themselves and their families, they will never run an economy in a way that encourages production and growth.”
“If it is led by people who are concerned with the legacy they will leave for their children and the future of the country, it will implement a variety of 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,” he added.