Enterprise Television- Sanusi Asks Government to Prioritize Spending
The Former Governor of the Central Bank of Nigeria (CBN) and present Emir of Kano and, Alhaji Muhammadu Sanusi II, speaking on Power Lunch has called on the federal government to prioritize its expenditure in order to be industrialized.
Sanusi said by simply improving the allocation efficiency, the government can make greater impact.
He said “I have looked at some of the deliberate policy decisions that have been taken, such as the continuation of the fuel subsidy; we are spending a trillion naira to 1.4 trillion naira on petroleum subsidies. Imagine what we could do with that. How many refineries will be built? How many power plants you could build? How much you could fix on your transmission.”
“So we need to decide for ourselves and understand that every dollar we spend, we have made a choice. We need to decide what is our priority and by this we can free up resources from some of these areas and put them into these areas.”
Sanusi II while speaking on how to increase revenues, he said countries that have the highest ratio of revenue to Gross Domestic Product (GDP) are those that seem to be faring very well on the transparency international corruption perception index.
He added that collaboration between the government and private sectors would help drive industrialization in the country.
“There’s a surplus of capital in the world which is why we’ve had many many years of low interest rate. There’s a saving glut, but the reason you’ve got these so much capital is that they are looking for outlets,” Sanusi said.
“By coming together, identifying those areas and sitting with private sectors and asking what do you want us to do for you as a government? So you don’t force them to internalise all those externalities.”
“Nine out of every 10 countries in Africa have huge trade deficits with China, but Asia developed mostly on domestic investments and resources,” he said.
“The African Development Bank has the intellectual resources and clearly is better positioned to negotiate with China on behalf of Africa as a bloc of nations. Europe approached global trade as a bloc so why can’t African nations do the same? This is clearly another area in urgent need of the Bank’s intervention,” he said.
He said Dangote Group would account for 60 per cent of Nigeria’s manufacturing GDP on completion of its pipeline projects. Manufacturing currently contributes just eight per cent to the country’s total GDP.
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