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The Emir of Kano, Muhammad Sanusi II, has stated that Nigeria's current economic challenges are a result of the country's failure to eliminate fuel subsidies over a decade ago.
Sanusi expressed this view on Tuesday during the Oxford Global Think Tank Leadership Conference.
The former Governor of the Central Bank of Nigeria remarked that Nigeria could have averted the severe inflation and economic turmoil it faces today if the administration of former President Goodluck Jonathan had been permitted to abolish the subsidy in 2011.
“If Nigerians had allowed the Jonathan government to remove the subsidy in 2011, there would have been some initial pain. However, that pain would have been a mere fraction of what we are experiencing now. This is the reason for the delay,” he stated.
He further explained that the Central Bank of Nigeria had previously evaluated the potential effects of subsidy removal and determined that inflation would not have surpassed 30 percent had the policy been enacted at that time.
“At that time, we calculated the figures at the Central Bank. I confidently stated that we should remove the subsidy immediately. Inflation would rise from 11 percent to 13 percent, but I would manage to bring it down within a year. We would not have faced inflation rates in the 30s,” he added.
Frequently Asked Questions
What is the main cause of Nigeria's current economic hardship?
The Emir of Kano, Muhammad Sanusi II, attributes Nigeria's economic hardship to the failure to remove fuel subsidies over a decade ago.
What would have happened if the fuel subsidy was removed in 2011?
Sanusi believes that if the subsidy had been removed in 2011, the resulting economic pain would have been minimal compared to the current situation, and inflation would not have exceeded 30 percent.
