Former Central Bank governor and current Emir of Kano, Sanusi Lamido Sanusi has strongly kicked against the plans by President Muhammadu Buhari to seek Senate’s approval of his $30 billion loan request.
Sanusi said even if the Senate gave its ascent to the loan, no country or global financial institution would be willing to grant such huge amount, given the instability of Nigeria’s economy. He made this disclosure during a policy dialogue forum organised by the Savannah Centre for Diplomacy, Democracy and Development (SCDDD), adding that for a nation that has five exchange rates, it would be difficult for such request to scale through.
Sanusi emphasised that oil cannot help the nation out of the current economic situation and that it would “never make Nigeria rich.”
His words: ”I can tell you for free, if the Senate today approves that we can borrow $30 billion, honestly, no one will lend us. It should be approved and I will like to see how you will go to the international market with an economy that has five exchange rates.
“There is one rate for petroleum marketers, there is inter-bank rate, there is another for money market operators such as western union, money gram, there is bureau de change rate and there is a special rate you get when you call the CBN for a transaction.
“So, who will borrow you when they don’t know your exact reserve and exchange rate. I want to see who will borrow you money when the Niger Delta bombing of oil is there when the main source of the loan repayment is oil.”
He noted that the country’s population continued to grow to over 40 million people since 2015, yet government found it hard to increase capital expenditure.
“We trust China too much. We need to be very careful. They are killing our textile and other industries and yet selling to us,” he added.
He said the country in the past 15 years had been borrowing money to pay salaries, fuel subsidy and there are possibilities for the nation to keep borrowing in the next 15 years, as those borrowed were not channeled into health, power or infrastructural development.
“The Senate should support tax incentives and other benefits to encourage private sectors,” he added.
In his remark, former Anambra State Governor, Peter Obi called for drastic reduction in cost of governance.