Emir of Kano, Muhammadu Sanusi II last week criticised the economic recovery plan of President Muhammadu Buhari.
The Emir, who is former Managing Director of First Bank Plc and former Governor of the Central Bank Nigeria, also said that Nigeria’s 2017 budget makes him wonder what the country’s economists are doing.
“The Federal Government of Nigeria is spending 66 per cent of its revenues on interests on debts, which means only 34 per cent of revenues is available for capital and recurrent expenditures. That model cannot work.”
“In the 2017 budget presented by the Federal Government, the amount earmarked for debt servicing is in excess of the entire non-oil revenue of the Federal Government, but that is not the problem. The problem is that it is a budget that is even going for more debts.”
“Growth can only come from investments. It cannot come from consumption. It cannot come from government balance sheet. It cannot come from borrowing because you cannot borrow unsustainably.”
“We have governors; they go to China and spend one month on a tour and what do they come back with? MoU on debts.”
“China will lend you $1.8bn to build light rail. This light rail will be done by the rail workers from China. The trains will come from China. The engines will come from China. The labour comes from China. The driver is Chinese. At the end of the day, what do you benefit from it?”
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