Oil is not enough to make us rich but enough to put us in trouble – Former CBN Governor, Sanusi Lamido

Sanusi Lamido Sanusi, the former Emir of Kano, has emphasized that oil production alone is insufficient to bring wealth to Nigeria and can, in fact, pose a risk to the nation.

He made this statement during the Distinguished Lecture Series hosted by the Nigerian Institute of International Affairs (NIIA) in Lagos. The lecture’s theme was “Resetting the Nigerian Economy for a Brighter Future.”

Sanusi highlighted that in relation to the country’s population, the level of Nigeria’s oil production falls short of being a source of significant wealth.

He noted that in resetting the Nigerian economy, it would be important to bring economics into public discourse.

He also emphasized the importance of recognizing the primacy of politics in economic matters.

According to him; “Oil is not enough to make us rich but enough to put us in trouble. At best, it represents working capital that can enable the launch of other industries.

“Nigeria produces just 2.3 barrels per person per year compared to Saudi Arabia’s 91.4, Kuwait’s 221.6 and Gabon’s 31.7,” he said.

He advocated that reduced dependence on petrol will be the long-term solution to the subsidy removal crisis currently being faced by people in the country.

“In the short term, the most effective measure to offset the removal of fuel subsidies is cash transfers.

“The design of individual cash transfer programmes varies considerably in reach and coverage.

“The long term solution is to reduce dependence on PMS.”

“If the state is a rentier state where the people in control see it an avenue to make money for themselves and their families, they are never going to run an economy in a manner that encourages production and growth.

“If it is run by people who are thinking long-term and of the legacy they will leave behind for their children and the future of the country, they will run different sets of different policies.

“I think every economist knows that multiple exchange rates are a problem, but as long as politicians are able to give themselves a dollar at 400 Naira and sell at 700 Naira, they are not ready to listen to the economists,” he said.