Emir of Kano, Sanusi II Faults Buhari’s Economic Model

– Muhammadu Sanusi ll said the current economic model would cause problem for the country
– He faulted Nigeria’s move to borrow from China
– The emir said Nigeria has little to gain from the deal

The former Governor of CBN and Emir of Kano, Muhammadu Sanusi ll has said the President Muhammadu Buhari administration’s economic model would not work as it will incur more debt. Speaking at the Kaduna State Economic Summit in Kaduna on the theme ‘Promoting investments in the midst of economic challenges’, the Emir said the current economic model would be used to service debts and faulted the plan by the government to take a loan from China.

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Sanusi said China would benefit more from the deal while the light rail plan would be of no economic use. He said: “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.

Emir of Kano, Muhammadu Sanusi II
Emir of Kano, Muhammadu Sanusi II

“That model cannot work. If you look at the 2017 budget of the Federal Government, I sometimes wonder what Nigerian economists are doing? 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.

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“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 (Memorandum of Understanding) on debts. READ ALSO: How Jonathan’s minister gave N30m bribe, for INEC official to rig 2015 election “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.

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“At the end of the day, what do you benefit from it? Your citizen will ride on a train and when you ride on a train, in northern Nigeria, in a state like Kano or Katsina, where are you going to? You are not going to an industrial estate to work. You are not going to school? You are not going to the farm. You borrow money from China to invest in trains so that your citizens can ride on them and go for weddings and naming ceremonies” he said.

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