When Emir of Kano, Alhaji Muhammad Lamido Sanusi, speaks on Nigerian economy and its management, the entire Aso Rock economic team shivers.
On Wednesday, the former Central Bank Nigeria governor told gathering of people at 2017 Kaduna Economic and Investment Summit, that the current administration of President Buhari is spending a whopping 66 per cent of the country revenue on servicing of interest on debts.
The first class emir said only 34 per cent are left for capital and recurrent expenditures.
The investment summit is tagged Kadinvest 2.0.
“The problem with the budget is that it goes for more debts considering that 66 per cent is paid as interest from the nation’s revenue, which means, more debts will be accumulated for the country.
“As a country and at both state and national level, the model of borrowing has reached its limit. Growth can only come from investment because you cannot continue to borrow unsustainably.
“You have governors who visit China on a month’s tour and eventually return home with MoUs for debts to invest in infrastructures that might not have direct impact on citizens.
Sanusi said borrowing to invest in light trains in regions like Northern Nigeria would not drive the economy but “instead encourages them to join the trains to attend weddings or naming ceremony.
“At the end of the day, a nation and a state are only transformed by vision, once the vision is flawed every single thing that follows logically collapses.”
He noted that Nigeria is getting more enmeshed in debt and has reached its borrowing limit leaving nothing to invest.
He lamented the high rate of poverty in the country, particularly the in the northern part part of country.
Alh. Sanusi is known for telling the government the bitter truth.
He told the administration of Dr. Goodluck Jonathan, former Nigeria’s president, that Nigerian owned oil company didn’t remit over $20 billion to the Federation Account, which led to his sack.
He once confidently told Federal Lawmakers that their cost of maintenance was a burden on tax payer’s monies.
Emir Sanusi is hated among Nigerian politicians for his fairlessless when it comes to Nigerian economic analysis .