Sunday, 4 December 2016

“CBN Illegally Funding Buhari’s Government” – Says Emir Sanusi

Muhammad Sanusi II, emir of Kano and
former governor of the Central Bank of
Nigeria (CBN), says the apex bank is
illegally lending to federal government.
Sanusi also said “the problem of the
current government is not having the right
policies to fix the current economic woes”.
Speaking at a policy monitoring dialogue
hosted by Savannah Centre for Diplomacy,
Democracy and Development, at Transcorp
Hilton Hotel in Abuja, Sanusi said the CBN
had been lending to the government above
the limits stipulated by the CBN Act of
Sanusi’s presentation showed that CBN’s
lending to the government since Buhari
came in had spiked from about N1.5
trillion to over N4.5 trillion.
“The CBN-FGN relationship is no longer
independent. In fact, one could argue their
relationship has become unhealthy,” he
“CBN claims on the FGN now tops N4.7
trillion — equal to almost 50% of the FGN’s
total domestic debt. This is a clear violation
of the Central Bank Act of 2007 (Section
38.2) which caps advances to the FGN at
5% of last year’s revenues. Has CBN
become the government’s lender of last or
first resort?”
He said no one was willing to lend to the
Nigerian government, further stating that
“if senate approved, I want to see who will
lend you $30billion when you have five
exchange rates”.
Sanusi said the country is enmeshed in
heavy debts, stating that out of every N1
Nigeria makes, 40 kobo goes to debt and 60
kobo is left for salaries, health, education,
power, infrastructure.
He said oil is merely a working capital that
cannot make the country rich. Nigeria
produces one barrel for 80 Nigerians;
Saudi Arabia produces one for 3 Saudis,
Sanusi said.
He noted that in every economy, growth is
driven by “consumption, investment and
net export”, adding that “our exports
cannot grow, without regulatory certainty
or an increase in the price of oil”.
He lamented that the country was spending
money on repaying debts and also on
recurrent expenditure, as against
education, healthcare, power, and other
The emir also stated that Nigeria is the
lowest per-capital spender on development
in Africa.
On speaking truth to power, Sanusi said: “I
cant apologise for being who I am. The
government I served, I did not keep quiet.
When I am not serving the government, I
cannot keep quiet.”