Former Emir of Kano, His Highness Muhammadu Sanusi II, has complained that the nation’s economy has not been diversified over 60 years after the discovery of oil in Nigeria.
He advised governments to invest on Human Capital, create enabling environment for investments, instead of borrowing to finance development.
Malam Sanusi, a one-time Governor of Central Bank of Nigeria(CBN), who gave the counsel on the second day of the Kaduna Economic and Investment Summit(KADINVEST) 5.0 on Tuesday, argued that, ‘’while everyone looks to the federal government for solutions, the truth is that its role in the economy is small—both in absolute and relative terms.’’
Sanusi praised Kaduna state government for not just increasing its Internally Generated Revenue (IGR), but providing infrastructure and creating the enabling environment for both domestic and foreign investments to thrive.
The former Emir recalled that the success of Nigeria’s pre-oil economy was based on the dynamism of its trading sector and the diversity of its export base.
He said that the diversity of the nation’s export in the pre-oil economy in Nigeria, ‘’meant that it was less vulnerable to a terms of trade shock driven by any one export in particular.”
Sanusi however, lamented that the nation’s economy has not been diversified, over 60 years after the discovery of oil in Nigeria.
Comparing Nigeria and Malaysia, Sanusi said that the latter has transformed from an exporter of primary products, to manufacturing over a 30-year period, from 1970 to 2000, adding that its “GDP/capita increased from $310 to $4,045 within that period.’’
The renowned Economist said that Nigeria has generated an increase in wealth from $345 in 1985 to $2,655 in 2015 GDP/capita but ‘’without any structural transformation in what the country actually produced.’’