Emir Sanusi Faults Buhari’s Economic Plan

– Muhammadu Sanusi ll said the current economic model would cause problem for the country
– He faulted Nigeria’s move to borrow from China
– The emir sad Nigeria has little to gain from the deal

Muhammadu
Sanusi ll who is the Emir of Kano has said the President Muhammadu
Buhari administration’s economic model would not work as it will incur
more debt.

The former governor of the Central Bank of Nigeria
spoke at the spoke at the Kaduna State Economic Summit in Kaduna on
Wednesday, April 6 on the theme: ‘Promoting investments in the midst of
economic challenges’.

Sanusi said the current economic model
would be used to service debts and faulted the plan by the government to
take a loan from China.

He said China would benefit more from the deal while the light rail plan would be of no economic use.

He
said: “The Federal Government of Nigeria is spending 66 per cent of its
revenues on interests on debts, which means only 34 per cent of
revenues is available for capital and recurrent expenditures.

“That
model cannot work. If you look at the 2017 budget of the Federal
Government, I sometimes wonder what Nigerian economists are doing? In
the 2017 budget presented by the Federal Government, the amount
earmarked for debt servicing is in excess of the entire non-oil revenue
of the Federal Government, but that is not the problem. The problem is
that it is a budget that is even going for more debts.”

“Growth
can only come from investments. It cannot come from consumption. It
cannot come from government balance sheet. It cannot come from borrowing
because you cannot borrow unsustainably.”

“We have governors;
they go to China and spend one month on a tour and what do they come
back with, MoU (Memorandum of Understanding) on debts.

“China
will lend you $1.8bn to build light rail. This light rail will be done
by the rail workers from China. The trains will come from China. The
engines will come from China. The labour comes from China. The driver is
Chinese.

“At the end of the day, what do you benefit from it?
Your citizen will ride on a train and when you ride on a train, in
northern Nigeria, in a state like Kano or Katsina, where are you going
to? You are not going to an industrial estate to work. You are not going
to school? You are not going to the farm. You borrow money from China
to invest in trains so that your citizens can ride on them and go for
weddings and naming ceremonies.”

https://www.naij.com/1097908-emir-sanusi-faults-buharis-economic-plan.html

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