Govt Should Stop Borrowing To Fix Economy — Sanusi Lamido
POLITICS DIGEST– The fourteenth Emir of Kano and former governor, Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, has advised governments, both federal and states, to desist from borrowing to fix the economy.
He stated this last night at the celebration of his 60th birthday and the launch of his book, ‘For the Good of the Nation’.
He said the decision of the Federal Government towards borrowings will have its negative effects on future generation.
He said, “Nigerians have to understand that the way we have ran the state is unsustainable, we cannot continue subsidising fuel, we cannot continue subsidising power. It is desirable but not sustainable but we have to be ready to make certain sacrifices.
“But if we don’t make those sacrifices now and set a fiscal position of government so that we are not relying on excessive borrowing we are putting the future of this country in jeopardy.
“This generation will continue borrowing to consume while passing the debt to the next generation to pay. It is difficult decision to make but we have to make it. Because if we don’t make it and you keep giving Nigerians everything they want today, at the end of the day you will leave the country.
“These decisions have to be taken to put this country on the part of fiscal sustainability.”
He also called on those calling for the breakup of the country to desist as Nigeria is a better country when everybody contributes and lives together.
“Those who said they want Nigeria to breakup do not know what they are talking about. We must put all hands together to safe this country. Those who love their country should be ready to help the country and I hope that government too should understand the people”, he said.
The leader of the Tijaniyyah Sufi sect in Nigeria stressed that by the end of this year, Nigeria’s Gross Domestic Product (GDP) will be worse than it was in 1980, pointing out that spending up to 90 percent of the country’s revenues on debt servicing was unsustainable.
“You look at the World Bank economic quality indicators and you will be shocked at what you are seeing. If we take Nigeria’s GDP per capita on a PPP (Purchasing Power Parity) basis, in 1980 it was $2,180 and by 2014, it was $3,099, which increased it by 50 percent.
“Between 2014 and 2019, this number fell to $2,229. At this rate, by this year or next year, Nigeria’s GDP per capita on a PPP basis will be back to where it was in 1980.
“We have not moved. We wiped out in five years all the progress made in the preceding 35 years. That is the kind of conversation we should have which we are not having. And what are the key drivers of this: you’ve got rising population growth, slow GDP growth, higher rates of inflation, and devaluation of the currency,” he said.