Former Emir of Kano, Sanusi Lamido Sanusi, has expressed the view that oil production alone is insufficient to make Nigeria prosperous and, in fact, poses a risk to the country. He made this statement during the Distinguished Lecture Series organized by the Nigerian Institute of International Affairs (NIIA) in Lagos, with the theme “Resetting the Nigerian Economy for a Brighter Future.”
Sanusi highlighted that Nigeria’s oil production, when compared to its population, is inadequate to lead to national wealth. He explained, “Oil is not enough to make us rich but enough to put us in trouble. At best, it represents working capital that can enable the launch of other industries.” To illustrate this, he pointed out that Nigeria produces a mere 2.3 barrels of oil per person per year, in stark contrast to Saudi Arabia’s 91.4, Kuwait’s 221.6, and Gabon’s 31.7.
Sanusi also advocated for reducing the country’s reliance on petroleum as a long-term solution to the ongoing challenges associated with fuel subsidy removal. He proposed that, in the short term, effective measures should be taken to offset the removal of fuel subsidies, such as implementing cash transfer programs.
Furthermore, he stressed the importance of elevating the economic discourse in the public sphere, emphasizing the significance of recognizing the central role of politics in economic matters. According to Sanusi, the orientation and policies of those in control of the state have a significant impact on the country’s economy. An economy managed by individuals who view the state as a means to generate personal wealth is unlikely to prioritize policies that encourage production and growth. Conversely, leaders with a long-term perspective focused on the nation’s future are more likely to implement different policies.
Sanusi also raised concerns about the presence of multiple exchange rates in Nigeria, pointing out that they pose challenges for the economy. However, as long as politicians can access dollars at one rate and sell them at a higher rate, they may be unwilling to heed the advice of economists.