<\/p>\n
Muhammadu Sanusi II, a former Emir of Kano, has described Nigeria as an oil economy with no oil revenue, as he bemoaned the country\u2019s economic woes.<\/p>\n
Sanusi spoke during the weekend at the 7th edition of the Kaduna Economic and Investment summit (KadInvest 7.0) held in the state.<\/p>\n
Also a former governor of the Central Bank of Nigeria (CBN), Sanusi decried the downward trend of crude oil revenue over the last ten years.<\/p>\n
\u201cBeyond the challenging global context, Nigeria has problems entirely of its own making,\u201d he said.<\/p>\n
Also Read:\u00a0Former Emir Of Kano, Sanusi Calls For Disbandment Of NNPC<\/strong><\/p>\n \u201cOil revenues, once the lifeblood of the federal government, have been in secular decline for over a decade. This has been happening regardless of the oil price environment.<\/p>\n \u201cAnnualising the realised revenues over H1\u201922, the federal government of Nigeria (FGN) is set to collect just $2.9 billion in oil proceeds this year, compared with nearly $60 billion in 2011.<\/p>\n \u201cThis is one of the biggest oversights in public financial management anywhere in emerging markets (EM).<\/p>\n Advertisement<\/p>\n \u201cThe result of this PFM failure is that budgeting has become progressively less realistic, borrowing needs have become progressively larger, the means of financing the deficits progressively less orthodox.\u201d<\/p>\n Sanusi said every year, higher targets are set and then duly missed, adding that yearly, record deficits are recorded.<\/p>\n \u201cIn some ways Nigeria\u2019s problems are not a failure of the system (it\u2019s working as one would expect) but a failure of design and a failure of implementation,\u201d he said.<\/p>\n \u201cIn the absence of the targeted revenues \u2013 both oil and non-oil \u2013 the federal government\u2019s crutch has become ways and means advances by the CBN.<\/p>\n Advertisement<\/p>\n \u201cThese have now reached an unprecedented N19.9 trillion, over four-time last year\u2019s realised revenues.<\/p>\n \u201cAs a share of the CBN\u2019s balance sheet, these now account for over 1\/3. The cost of servicing these debts \u2013 along with all the conventional debts \u2014 has pushed FGN debt service to N2,597 billion in H1\u201922 compared to FGN revenues of N2,402 billion (108 percent).\u201d<\/p>\n Meanwhile, in the current environment, Sanusi said the first and most obvious problem is the existence of the fuel subsidy and opportunities this creates for fraud.<\/p>\n \u201cAverage daily fuel consumption in Nigeria (by the NNPC\u2019s admission) is 66 million litres\/day, and on some days as high as 100mn litres,\u201d he said.<\/p>\n \u201cThis is roughly equivalent to where Indonesia (2019), a country with nearly three-times Nigeria\u2019s GDP\/capita, two-times the number of vehicles and two and a half times the size of road network.<\/p>\n \u201cAnd this is not just the impact of subsidies. In Iran official fuel price are 5 US cents per litre, less than 15 perecnt of the pump price in Nigeria.\u201d<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Sanusi Lamido Muhammadu Sanusi II, a former Emir of Kano, has described Nigeria as an oil economy with no oil revenue, as he bemoaned the country\u2019s economic woes. Sanusi spoke during the weekend at the 7th edition of the Kaduna Economic and Investment summit (KadInvest 7.0) held in the state. Also a former governor of […]<\/p>\n","protected":false},"author":1,"featured_media":1227199,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3888],"tags":[],"class_list":["post-1227197","post","type-post","status-publish","format-standard","has-post-thumbnail","category-nigeria-news"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1227197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1227197"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1227197\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1227197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1227197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1227197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}