The 14th Emir of Kano and former Governor of the Central Bank of Nigeria (CBN), Lamido Sanusi, says reduced dependence on petrol will be the long-term solution to the petrol subsidy removal crisis.
Sanusi, who made the assertion at the Distinguished Lecture Series of the Nigerian Institute of International Affairs (NIIA), on Thursday in Lagos, said, 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 lecture series, which had the theme: Resetting the Nigerian Economy for a Brighter Future, sought to diagnose issues surrounding Nigerias economic predicament and propose practical steps to address the situation.
The former CBN governor said that Nigerians would need to appreciate, across the board, the economys importance. According to him, an economy is run on the basis of the ideological orientation of those who control the state, adding that many citizens do not understand it.
Sanusi said that in resetting the Nigerian economy, it would be important to bring economics into public discourse. The former CBN governor emphasised the importance of recognising the primacy of politics in economic matters.
He said, If the State is a rentier State, whereby 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 in a manner 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”.
Sanusi also said that civil society should be blamed than politicians for the current economic situation of the country. He added that the governance of the economy was an important aspect to note in resetting the economy. According to him, the country cannot continue doing the same thing and expect a different outcome.
On Nigerias Gross Domestic Product (GDP) and debt ratio, Sanusi said that Nigeria had a huge revenue problem, and advised that one of the solutions to Nigerias fiscal problems would be to raise revenue.
He urged that the image of the country should be improved to make it an attractive destination for investments.
