Mohammed Sanusi, the former Governor of the Central Bank of Nigeria, has defended President Bola Tinubu’s administration against criticisms of the current economic challenges in Nigeria. Speaking at a religious event in Abuja, Sanusi attributed the nation’s economic difficulties to mismanagement and flawed economic policies over the past eight years rather than the current government’s actions.
Sanusi emphasized that the economic hardship Nigerians are experiencing was foreseeable, given the monetary policy trends of the last eight years. He highlighted that similar economic crises have occurred in countries like Germany, Zimbabwe, Uganda, and Venezuela, underscoring that Nigeria’s situation is not unique.
The former CBN governor pointed out that the previous administration ignored calls for economic policy corrections, leading to a situation where Nigeria accumulated significant foreign and domestic debt. He noted that the Central Bank of Nigeria’s debt exceeds N30 trillion, with debt service costs now surpassing 100 per cent of the debt value.
Sanusi praised President Tinubu’s decision to remove fuel subsidies, describing it as necessary given Nigeria’s inability to afford subsidy payments. He criticized the Central Bank’s excessive money printing in the past eight years, which led to the depreciation of the naira and inflation.
During these challenging times, Sanusi called on Nigerians to adjust their expectations and live within their means. He urged those who can assist the less fortunate to do so, emphasizing the importance of solidarity and resilience in overcoming the current economic crisis.
President Tinubu, in his inaugural speech, announced the removal of fuel subsidies, stating that the funds used for subsidies would be better allocated to improving healthcare, transportation, education, housing, and national security. However, this decision has increased living costs, prompting protests in several states against the rising prices of food and other essential commodities.
Nigeria’s economic hardship is a complex issue rooted in years of policy missteps and financial mismanagement. Mohammed Sanusi’s defence of President Bola Tinubu’s administration sheds light on the multifaceted nature of the crisis, highlighting the need for a nuanced understanding of its origins and potential solutions.
Sanusi’s insights remind us that the path to economic stability and growth is fraught with difficult decisions, including the controversial removal of fuel subsidies. While such measures may cause short-term pain, they are often necessary to rectify long-standing economic imbalances.
As Nigeria navigates these turbulent economic waters, it is crucial for both the government and citizens to engage in constructive dialogue, focusing on sustainable solutions rather than assigning blame. The emphasis must be on implementing sound economic policies, enhancing transparency, and fostering an environment conducive to growth and development.
The call for resilience and solidarity among Nigerians is more relevant than ever. In times of hardship, the collective spirit and determination of the people can be a powerful force for change. By supporting one another and holding leaders accountable, Nigerians can emerge more robust and united from this crisis.
Did You Know?
- Economic crises similar to Nigeria’s have occurred globally, underscoring the importance of robust and adaptable economic policies.
- The Central Bank of Nigeria’s debt exceeds N30 trillion, highlighting the scale of the country’s financial challenges.
- The removal of fuel subsidies, while controversial, is a step towards addressing fiscal imbalances and reallocating resources to critical sectors.
- Protests in various states reflect the immediate impact of economic policies on citizens’ daily lives, underscoring the need for effective communication and support measures from the government.
- Solidarity and community support play a crucial role in mitigating the effects of economic hardship, emphasizing the importance of collective action in times of crisis.