anusi Lamido Advocates Reduced Dependence on Petrol to Solve Fuel Subsidy Issue
Former Emir of Kano, Sanusi Lamido, shared his perspective on solving the fuel subsidy issue during a lecture at the Nigerian Institute of International Affairs (NIIA) in Lagos.
Reducing Dependence on Petrol
Sanusi Lamido emphasized the importance of reducing the country’s dependence on petrol as a long-term solution to the fuel subsidy problem.
He pointed out that Nigeria’s oil production, relative to its population, is not sufficient to make the nation wealthy but can pose risks.
Commendation for Cash Transfer Initiative
The former governor of the Central Bank of Nigeria (CBN) commended President Bola Tinubu’s cash transfer initiative, which aims to alleviate the impact of fuel subsidy removal on Nigerians.
He suggested that in the short term, cash transfers are an effective measure to offset the removal of fuel subsidies.
Nigeria’s Oil Production and Global Comparison
Sanusi highlighted that Nigeria’s oil production, at just 2.3 barrels per person per year, pales in comparison to countries like Saudi Arabia, Kuwait, and Gabon.
This discrepancy emphasizes the need to diversify the country’s economy beyond oil.
Bringing Economics into Public Discourse
Sanusi stressed the importance of incorporating economics into public discourse when resetting the Nigerian economy.
He noted that the mindset of those in control of the state plays a significant role in economic policies. A long-term vision and focus on the country’s future are essential for running an economy that encourages production and growth.
Challenges of Multiple Exchange Rates
Sanusi pointed out that multiple exchange rates can be problematic. However, he noted that political factors, such as politicians benefiting from exchange rate disparities, can hinder efforts to address this issue.