- The administration of President Muhammadu Buhari has faced another criticism from the emir of Kano, Muhammad Sanusi
- Emir Sanusi says he is not afraid to speak adding that he had often spoken in the government of Goodluck Jonathan that he served as CBN governor
Emir of Kano, Muhammad Sanusi II, has accused the Central Bank of Nigeria (CBN) of illegally lending to federal government, The Cable is reporting.
Emir Sanusi spoke at a policy monitoring dialogue hosted by Savannah Centre for Diplomacy, Democracy and Development, at Transcorp Hilton Hotel in Abuja.
According to him, "The problem of the current government is not having the right policies to fix the current economic woes."
Sanusi accused the CBN of lending beyond the limits stipulated by the CBN Act of 2007 to the federal government.
The report indicated that Sanusi's presentation showed that the lending to the government since Buhari became president had increased from about N1.5 trillion to over N4.5 trillion.
The emir, a former governor of the CBN, said: “The CBN-FGN relationship is no longer independent. In fact, one could argue their relationship has become unhealthy.
“CBN claims on the FGN now tops N4.7 trillion — equal to almost 50% of the FGN’s total domestic debt.
"This is a clear violation of the Central Bank Act of 2007 (Section 38.2) which caps advances to the FGN at 5% of last year’s revenues. Has CBN become the government’s lender of last or first resort?”
According to him, Nigeria is hit by so much debt that no one is willing to lend to the government. To him, out of every N1 Nigeria makes, 40 kobo goes to debt and 60 kobo is left for salaries, health, education, power, infrastructure.
He added: "If senate approved, I want to see who will lend you $30 billion when you have five exchange rates."
Explaining that Nigeria cannot become rich through oil, he added that the while the country produces one barrel for 80 citizens, Saudi Arabia produces one barrel for 3 citizens.
While noting that growth is only driven by consumption, investment and net export, he stressed that Nigeria's exports cannot grow without regulatory certainty or an increase in the price of oil.
Sanusi said Nigeria is the lowest per-capital spender on development in Africa and added: “I cant apologise for being who I am.
"The government I served, I did not keep quiet. When I am not serving the government, I cannot keep quiet.”