Sanusi: oil production in Nigeria is insufficient to make the country wealthy

According to Sanusi Lamido Sanusi, a former Emir of Kano, oil production is insufficient for Nigeria to become wealthy and may even put it at risk.

Sanusi made the statement on Thursday at the “Resetting the Nigerian Economy for a Brighter Future” Distinguished Lecture Series of the Nigerian Institute of International Affairs (NIIA), Lagos.

He pointed out that Nigeria’s oil production is insufficient to make the nation wealthy given its population.

“Oil is enough to get us into trouble but not enough to make us wealthy. It is, at most, a working capital source that could help other sectors get off the ground.

“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 claimed.

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He argued that the long-term solution to the subsidy removal dilemma that the people of the nation are currently experiencing will be a decreased reliance on petrol.

“Cash transfers are the most practical way to counteract the elimination of fuel subsidies in the short run.

“The reach and coverage of various cash transfer initiatives vary greatly in design.

“Reducing reliance on PMS is the long-term solution.”

Former Central Bank of Nigeria (CBN) governor Sanusi stated that all Nigerians would need to understand the significance of the economy.

He continued by saying that it would be crucial to introduce economics into popular conversation in order to reset the Nigerian economy.

Additionally, he highlighted the significance of acknowledging politics’ precedence in economic problems.

Sanusi contends that an economy is managed in accordance with the political ideologies of people in power.

“If the state is a rentier state, where the ruling class views it as a means of generating income for themselves and their families, they will never manage the economy in a way that promotes growth and productivity.

“It will run different sets of different policies if it is governed by individuals who are thinking long-term and of the legacy they will leave behind for their children and the future of the country.

Every economist, he claimed, is aware that having several exchange rates is problematic, but politicians won’t pay attention to economists as long as they can buy a dollar for 400 Naira and sell it for 700 Naira.