It is very unusual for a monarch to make pronouncements that may attract comments, either publicly or confidently. It is even more improper and indecorous if such comments are capable of leading to a highly controversial issue or argument. This is because monarchs, or traditional rulers as they are called in this part of the Globe,a always reserved and totally unwilling to communicate
very much, talk freely or reveal all the facts about a particular topic or issue during public discourse. But Emir Muhammadu Sansui, the Second of Kano state, has disregarded such conventions and spoke his mind ardently and frankly in an open forum when he counseled President Muhammadu on professional standpoint, over serious economic issues that may present hazardous consequences to the country if left unchecked or unaddressed.
Emir Sanusi, who spoke extensively on the sate of the country’s economy, at a public lecture recently, overtly advocated the removal of the controversial subsidy on fuel if the country is to be moved out of the economic doldrums it is presently situated. He pointed out that Nigeria can no longer afford the many leakages that have battered the economy over the years. Quoting from his experience as a former Governor of the Central Bank of Nigeria, he warned that Nigeria cannot continue to labor under heavy debt burden which clearly inhibits its efforts at undertaking commensurate projects in many social sectors such as health, education and defense. He lamented how a staggering sum of five-hundred-billion Naira was expended in the first half of this year in servicing debts while altogether a prohibitive sum of one-trillion Naira could eventually be used up for the same purpose.
In consideration of the Emir’s reasons, put forward in support of the subsidy removal, it could be seen that has become imperative especially as the government is left with no viable option other than to do so. Emir Sanusi’s point of view was further buttressed by the fact that there is no room in the government’s balance sheet for borrowing and spending, a situation that must compel it to block leakages and to stop non-priority expenditures.
This is particularly so in the face of dwindling resources arising from shortfall in oil revenue, exaggerating government’s inability to borrow. In that case, the government must adopt certain austerity measures that may necessitate shutting expenses lines, especially longstanding ones. It is, therefore, necessary for all to see that such scenario doesn’t make sense at this time for the government to heed Emir Sanusi’s counsel and discontinue paying petroleum subsidy; and accordingly, the fuel subsidy has to go.
This is more so because despite the immense oil reserve deep under Nigeria’s soil its refineries are dysfunctional, lacking in the ability or capacity to in the country. Nigeria is Africa’s biggest importer of petroleum products from the United Kingdom, especially the downstream products of the oil sector. Nigeria also lacks the capability to utilize its vast gas resources and cannot also effectively harness it for the production of the much needed electricity.
Against that backdrop, therefore, Emir Sanusi has aptly described the weird economic sense of Nigerians who depend entirely on the proceeds of petroleum and coupled with the fact that its leaders were spendthrifts, lacking in any wise economic sense of planning for the rainy day, their country is now almost broke as the price of oil in the international markets has taken a critical turn for the worst.
So, with that dismal picture painted by one of the country’s most brilliant economists, it is expedient to expand our revenue base by increasing all forms of taxations, including Value Added Tax, VAT and undertake drastic devaluation of the Naira so as to control the slowing pace of the country’s economic growth in an effort to allow Africa’s biggest economy wither the storm of long term slump. Government after government in this country have been vehemently denying or overlooking the potential dangers that confront or prohibit rapid growth of the economy and the buoyancy of the Naira.
However, sharply contradicting Emir Sanusi’s brilliant arguments bordering on the inherent dangers facing the economy, is the spate of criticisms and sudden, strong outburst of disapprovals countering his sincere advise to President Buhari, with civil societies and organized labor unions urging him to out rightly disregard his recommendations because they are anti-masses and will further impoverish Nigerians. Many other Nigerians also believe that the former Central Bank Governor, now an exalted monarch must have lost touch with present realities and longer sympathetic to the plight of the poor.
But no matter what, the Emir has frankly spoken his mind, exercising his franchise as Nigerian,and it is now entirely left to President Buhari as former minister of petroleum who knows all the problems inherent in the oil industry to accept to work with Emir Sanusi’s recommendations or simply jettison them overboard. Emir Sanusi has flown a kite and Nigerians await how he would bring it down.
