Emir of Kano, Muhammad Sanusi 11, on Tuesday declared that Nigeria is on the threshold of bankruptcy following unfavorable economic policies.
The former Governor of the Central Bank of Nigeria (CBN) said this during the ongoing 3rd National Treasury Workshop organized by the office of the Accountant General of the Federation holding in Coronation Hall, Government House, Kano.
Sanusi advised President Muhammadu Buhari’s administration to cancel subsidy in petroleum and electricity tariffs if the economy must stabilize.
The monarch lamented that for 30 years, successive governments have had this project called petroleum subsidy, insisting that this is the right time to stop it so as to save the nation’s economy.
According to him, such policies as subsidizing petroleum products and electricity tariffs were making Nigeria bankrupt.
He insisted that Buhari must tell Nigerians the fact about the economic situation and also act quickly on it because the nation is already bankrupt.
Sanusi said: “The country is Bankrupt and we are heading to bankruptcy. What happened is that the Federal Government do pay petroleum subsidy, pay electricity tariff subsidy, and if there is a rise in interest rates, Federal Government pays.
“What is more life-threatening than the subsidy that we have to sacrifice education, health sector and infrastructure for us to have cheap petroleum.
“If truly President Buhari is fighting poverty, he should remove the risk on the national financial sector and stop the subsidy regime which is fraudulent.
“Since I have decided to come here, you have to accept what I have said here. And please, if you do not want to here the truth, never invite me.
“So let us talk about the state of public finance in Nigeria. We have a number of very difficult decisions that we must make, and we should face the reality. His Excellency, the President said in his inaugural speech that his government would like to lift 100 million people out of poverty, it was a speech that was well received not only in this country, but the world-wide.
“The number of people living with poverty in Nigeria are frightening. By 2050, 85 percent of those living in extreme poverty in the world will be from the Africa continent. And Nigeria and the Democratic Republic of Congo will take the lead.
“Two days ago, I read that the percentage of government revenue going to debt services has risen to 70 percent.
“These numbers are not lying. They are public numbers. I read them in the newspapers. When you are spending 70 percent of your revenue on debt services, then you are managing 30 percent.
“And then, you continue subsidizing petroleum products; and spending N1.5 trillion per annum on petroleum subsidy! And then we are subsidizing electricity tariff. And maybe, you have to borrow from the capital market or the Central Bank of Nigeria to service the shortfall in the electricity tariff, where is the money to pay salaries, where is the money for education, where other government projects.”