Economic Mismanagement of past 10 years Will Not Be Undone in One Year – Sanusi

Muhammadu Sanusi, the ex-governor of the Central Bank of Nigeria and the 14th Emir of Kano, believes that it will be a considerable amount of time before the Nigerian economy can recover from a decade of poor management.

At the 2024 Rivers State Economic and Investment Summit, the former CBN governor highlighted that it would take over six months to a year to reverse the economic mismanagement of the past decade.

He commended the government of Rivers State for prioritizing economic development through investment promotion, emphasizing that such reforms involve tough and unpopular decisions that are necessary for progress.

Sanusi emphasized that ensuring a brighter future for the people is only possible through this approach. He stressed the importance of being pragmatic as Nigerians, acknowledging that rectifying the mismanagement of the past decade cannot be achieved within a short timeframe of six months or one year.

Under President Bola Tinubu’s current leadership, significant economic measures have been implemented, such as the elimination of petrol subsidies and the consolidation of the forex rate.

These actions have led to a sharp increase in commodity prices, causing hardship for many Nigerians. Sanusi acknowledges that it may take some time for the effects of these decisions to be fully realized by the population, but he emphasizes their importance in reforming the economy.

It is important to recognize that the challenging decisions being made will require time to positively impact the economy. While the results may not be immediate, these decisions are crucial for saving the economy, stated Sanusi.

He emphasized that without undergoing economic reforms, Nigeria could have faced a fate similar to Zimbabwe, Venezuela, and Argentina, which would have been disastrous.

Additionally, he discussed various topics such as taxation, stressing that government taxation should be fair and not excessive. Referencing Margaret Thatcher’s famous quote, Sanusi reiterated that prosperity cannot be achieved solely through increased taxation.

He underscored the significance of a well-organized taxation system, highlighting the importance of focusing on taxing growth rather than income.

Additionally, Sanusi emphasized the necessity of diversifying the economy beyond relying solely on oil as a resource in order to ensure Nigeria’s prosperity.