Emir of Kano Muhammad Sanusi ll, profer solution to Nigeria Economy crises called recession by the Buhari led APC Government.

Organised Private Sector, OPS,and a source, have thrown their weight behind former CBN governor, now Emir of Kano, Muhammad Sanusi II, over his claim that the federal government over-borrowed from the apex bank. The source, who would not want his name in print, said the figures Sanusi quoted were correct, since same were posted on CBN website as at October 2016, noting that
the paper Sanusi delivered was in November. He said the CBN and the federal government came out with figures on Treasury Single Account, TSA, that showed the financial position of the government in December 2016. According to him, Sanusi did not talk about TSA balances; the figures he quoted revolved around treasury bills and rediscount, converted bonds and overdraft. President of Abuja Chamber of Commerce and Industry, Mr Tony Ejinkeonye, who spoke to Vanguard in Abuja, said he aligned with the position of Sanusi but did not support the channel through which the former Central Bank governor passed the message. “Abuja Chamber of Commerce and Industry quite agrees with the former CBN governor because he was in the system and knows what he was talking about but government should have taken the criticism seriously if Sanusi was constructive about it. “As the former CBN governor, we believe he meant what he said. He had valid points but just that it was made open and public so it made it look as if he was opposing the present administration.” The Presidency had on Monday, said Sanusi lied when he said CBN lending to the federal government was above the legal limit, saying the apex bank advanced the federal government the sum of N1.193 trillion as ways and means as at December 2, 2016. A fact sheet of the account of the federal government with the CBN from Presidency sources had disclosed that the federal government did not borrow above its limit from the Central Bank of Nigeria, CBN. According to the fact sheet, money lent to the federal government by the CBN through ways and means was N1.467trillion far less than what Sanusi claimed. It will be recalled that Emir Sanusi had said he was not afraid to speak, not even when he served as CBN governor in the government of Goodluck Jonathan. Sanusi Lamido Sanusi, the Emir of Kano Defending Sanusi’s figures, the source said: “As at October 2016, treasury bills and rediscount amounted to N2.28878bn. Converted Bonds had a value of N1.906trn, while over draft on budgetary account amounted to N1.740trn. ‘’Money raised through ways and means for the month of October was N364.156bn and other claims on federal government, such as treasury certificate and claim on FG claim on federation account.” The source blamed the media for not telling the full story but latched at some comments made when the presentation was made. Brandishing a copy of the 34-page power point presentation made at the forum, he said the traditional ruler made a case for the way forward during his presentation which was not reflected in the story. The source quoted Sanusi as saying in the presentation: “Nigeria should gear its policies towards attracting investment by implementing the June 2016 foreign exchange reforms, which were designed to unite the market in a single, transparent rate, not to create four new ones.’’ The source said Sanusi suggested that Nigeria should “focus on reducing federal government’s debt service through greater concessional borrowing, rather than increasing its spending through CBN financing.” Sanusi in the presentation, said: “Until Nigeria signals a clear change in policy, it will be difficult for it to restore credibility; and until credibility is restored, it will be difficult for it to attract investment, both at home and abroad, and until investment picks up, it will be difficult for Nigeria to return to growth. “Nigeria’s power sector reforms have stalled, and the sector is in danger of collapse unless urgent action is taken. What can the federal and state governments do? “Petition for a specific debt raising programme to address unpaid arrears. Until this happens, no new investment can take place. Government should raise public awareness about the necessity of cost-reflective tariffs, including the hike in 2016; ensure that DISCO owners make the stipulated investment in metering. ‘’Without greater power generation, Nigeria’s import-substitution initiatives are meaningless as exporters like China offer cheap credit but in return, demand access to local goods markets. “Developing local manufacturing capacity is counter to their interests. Emir Sanusi Presentation had said that the current foreign exchange problem solution is not foreign exchange swaps with China which, in practice, is just a subsidy for Chinese exporters – but direct investment into local manufacturing capacity. “The years of Africa Rising where one tide could lift all boats are behind us. The commodity cycle has turned, and government balance sheets are stretched. As a result, sustainable, inclusive growth now depends on investment and in Nigeria’s case, policy credibility will be needed first. ‘’The role that government can play in this process is defined by implementing the foreign exchange policy it already has and creating the conditions for local manufacturing to develop. “More specifically, it can allow price discovery to occur in the foreign exchange market; close the gap between foreign exchange policy design and implementation; shift the focus of fiscal policy towards reducing debt-servicing costs; firmly and unequivocally eliminate fuel subsidies; raise more concessional funding from abroad; capitalise NBET, so that arrears can be cleared; protect infant industry, specifically labour-intensive manufacturing.”